Triumph Group sells product support business to AAR Corp.

Triumph Group (TGI) has entered into a definitive agreement with AAR Corp. (AIR) to sell its Product Support business. The transaction is valued at $725M, representing a 14.5x trailing 12 months Adjusted EBITDAP multiple as of September 30. The primary intended use of proceeds from the transaction is debt reduction. The net after-tax proceeds are expected to be approximately $700M, resulting in pro forma net leverage of approximately 4.0x net debt to Adjusted EBITDAP as of March 2024. The business generated revenues of approximately $268M for the trailing 12 months ended September 30, 2023. Upon completion of the transaction, Triumph will advance in aerospace and its adjacent markets as a value-added and IP-based business consisting of four pure play engineered systems components and aftermarket companies focused on Actuation Products and Services, Systems Electronics and Controls, Geared Solutions and Interiors. The transaction is expected to close in Q1 2024 calendar year, subject to customary closing conditions, including receipt of certain regulatory approvals.