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293:. TransDigm develops and manufactures engineered aerospace components. It was founded in 1993, when four industrial aerospace companies were combined by a private equity firm in a leveraged buyout. TransDigm expanded the range of aerospace components it manufactures through acquisitions over the years. It filed an
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413:, this is because older aerospace components are not expensive to produce individually, but require keeping expensive dated manufacturing lines active for small-batch production. After a congressional hearing criticizing TransDigm's pricing practices, the company agreed to refund the Pentagon $ 16 million.
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The company's practices and position have also reached the commercial aviation industry, ranging from employees to executives within the aviation industry. A former employee of AvtechTyee, a firm later acquired by TransDigm, commented on how airlines are stuck with TransDigm's parts with a refusal to
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TransDigm's subsidiaries manufacture engineered aircraft components. These components include items like pumps, valves and avionics. Most of the aerospace parts the company sells are proprietary products where TransDigm is the only manufacturer that currently makes the part. As of 2016, about half of
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TransDigm's products fall into three segments. Power and control products, such as pumps, valves and ignition systems, account for about half of TransDigm's revenue. Airframe products like latching and locking devices, cockpit security components and audio systems, account for most of the other half
330:
Originally, TransDigm manufactured and marketed a small group of aircraft components, such as batteries, pumps and fuel connectors. TransDigm expanded its range of aircraft component products over time through acquisitions of other aerospace component manufacturers, growing in revenues by about 25%
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often caught in the middle when TransDigm acquires companies that Boeing contracted with to make its parts. TransDigm counterargues, though, that its pricing practices are justified when considering its efforts to ensure that planes always fly safely, and that the sting is necessary to continue
358:
In 2010, TransDigm acquired competing aftermarket aerospace parts company McKechnie
Aerospace Holdings for $ 1.27 billion. In 2016, it bought Data Device Corp., a power, networking and electronics company, for $ 1 billion. Two years later, TransDigm purchased a competing parts manufacturer,
431:
utilize the company equating to an airline's plane not flying. Concurring on the situation was Abdol
Moabery, CEO of the aircraft maintenance company GA Telesis, TransDigm's pricing practices have made it costlier for airlines to repair their planes, with aircraft manufacturers like
427:. A Department of Defense review alleged that the company charged $ 119 million for parts that should have cost $ 28 million, with an earlier 2021 report alleging that TransDigm made an excess profit of $ 20.8 million on 105 spare parts on 150 contracts.
314:
TransDigm was formed in 1993 under the name TD Holding
Corporation. It was founded with an initial equity investment of $ 10 million. The company was created by founders W. Nicholas Howley and Douglas Peacock, along with private equity firm
350:
TransDigm focuses largely on acquiring other aerospace component manufacturers for expansion and growth. The company acquired more than 60 businesses in its first 25 years of operations, 49 of which were completed after TransDigm's
749:
323:. Those four companies were Adel Fasteners, Aero Products Component Services, Controlex Corporation and Wiggins Connectors. Once the acquisitions were completed, TD Holding was renamed to TransDigm, Inc. and based in
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its revenues are from aftermarket parts and half are from OEM parts. As of 2008, about three-fourths of its revenues were from commercial aircraft parts and one-fourth was from military aircraft parts.
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By 2002, TransDigm had grown to $ 300 million in annual revenues, up from $ 131 million in 1999. TransDigm was acquired from
Odyssey Investment Partners by another private equity firm,
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of TransDigm's revenues. A smaller portion of the company's business is from non-aviation products, such as restraints, space systems and parts for heavy industrial equipment.
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342:, in 2003 for $ 1.1 billion. In 2006, the company went public on the New York Stock Exchange. By the following year, TransDigm had grown to $ 593 million in annual revenues.
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per-year from 1993 to 1998. In 1998, Odyssey
Investment Partners, a private equity firm, acquired TransDigm from Kelso & Company. After the
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was purchasing parts from TransDigm at very high profit margins, such as a 9,400% markup on a metal pin. According to the authors of
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In
November 2023, TransDigm acquired Electron Device Business of Communications & Power Industries for $ 1.39 billion.
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TransDigm's revenues grew by 15-fold from TransDigm's IPO in 2006 to 2020. However, business declined in 2020 due to the
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319:, in order to acquire and consolidate four industrial aerospace companies from IMO Industries Inc. in a
370:-based helicopter mission equipment company, DART Aerospace for approximately $ 360 million in cash.
974:"DDC to sell for $ 1 billion; joining TransDigm commercial and military avionics component supplier"
946:
Hoover's
Handbook of Emerging Companies 2008: Profiles of America's Most Exciting Growth Enterprises
554:
1182:"TransDigm's 'excess profits' on defense contracts reveal costly loopholes in the law: Scott Amey"
778:
686:
633:"Rapid Escalation: An Overview of Private Equity Investing in the Aerospace and Defense Industry"
352:
298:
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324:
335:, the aerospace industry declined temporarily, resulting in losses and layoffs for TransDigm.
1157:"Audit of the Business Model for TransDigm Group Inc. and Its Impact on Department of Defen"
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688:
The
Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
423:
In 2022, founder Nick Howley was again called to testify before
Congress on accusations of
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919:"TransDigm Acquires Unit Of Communications & Power Industries | Aviation Week Network"
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1133:"Meet The Billionaire Who Built A Fortune 'Price-Gouging' Customers Like The Pentagon"
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audited TransDigm's pricing practices for government contracts. It concluded that
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1108:"TransDigm Group will cut up to 15% of its workforce as pandemic reduces demand"
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is an
American publicly traded aerospace manufacturing company headquartered in
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1031:"A Pentagon Contractor's 9,400% Profit on a Half-Inch Metal Pin Is Challenged"
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In May 2023, TransDigm acquired aviation and transportation research company
363:, for $ 4 billion. This was the largest acquisition in TransDigm's history.
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406:
1207:"How the Pentagon falls victim to price gouging by military contractors"
1060:"Pentagon Rips TransDigm for 'Gouging' Taxpayers With $ 4,361 Metal Pin"
750:"TransDigm dives deeper into aero spare parts market with Esterline buy"
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1085:"TransDigm to repay $ 16 million for overcharging the Pentagon"
721:"TransDigm Climbs 15% in IPO, Hitting Middle of Expected Range"
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482:"Cleveland aerospace company accused of Pentagon profiteering"
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901:"TransDigm Completes Acquisition of Calspan Corporation"
806:"TransDigm to Acquire Data Device Corp. for $ 1 Billion"
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Davis, Scott; Copeland, Carter; Wertheimer, Rob (2020).
607:"Warburg Pincus to Acquire TransDigm for $ 1.1 Billion"
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Aircraft component manufacturers of the United States
883:"Calspan to be acquired by a Cleveland-based company"
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857:"TransDigm Announces Acquisition of DART Aerospace"
832:"Aerospace supplier Esterline sold for $ 4 billion"
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1161:Department of Defense Office of Inspector General
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779:"TransDigm to buy rival McKechnie for $ 1.27 bl"
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691:. Harvard Business Review Press. p. 34.
280:Financials as of September 30, 2023.
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459:Form 10-K: TransDigm Group Incorporated 2023
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748:Banerjee, Arunima (October 10, 2018).
631:Lehman, John; Brooks, Stephen (2000).
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366:In March 2022, TransDigm acquired the
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948:. Hoover's. March 2008. p. 345.
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1223:Business data for TransDigm Group:
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830:Gates, Dominic (October 10, 2018).
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978:Military and Aerospace Electronics
527:. Vol. 119. St. James Press.
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136:Kevin Stein (President & CEO)
1106:Suttell, Scott (April 2, 2020).
1005:Company Profile: TransDigm Group
480:Eaton, Sabrina (June 18, 2019).
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277:Footnotes / references
881:Glynn, Matt (March 14, 2023).
719:Cowan, Lynn (March 16, 2006).
1:
1291:2006 initial public offerings
1286:2003 mergers and acquisitions
1281:1998 mergers and acquisitions
1205:Chasan, Aliza (21 May 2023).
972:Keller, John (May 27, 2016).
907:(Press release). May 8, 2023.
804:Stynes, Tess (May 27, 2016).
637:The Journal of Private Equity
605:Sidel, Robin (June 9, 2003).
443:
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139:W. Nicholas Howley (Chairman)
397:Accusations of price gouging
287:TransDigm Group Incorporated
20:TransDigm Group Incorporated
7:
440:providing quality service.
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87:; 31 years ago
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766:in its biggest-ever deal
1087:. Reuters. May 24, 2019
810:The Wall Street Journal
725:The Wall Street Journal
649:10.3905/jpe.2000.319955
611:The Wall Street Journal
585:Lessons from the Titans
411:Lessons from the Titans
353:initial public offering
299:New York Stock Exchange
295:initial public offering
16:U.S. industrial company
685:Thorndike, W. (2012).
333:September 11th attacks
325:Richmond Heights, Ohio
403:Department of Defense
785:. September 27, 2010
523:Hill, Karen (2011).
77:Aerospace components
1008:, The Rational Walk
756:on October 10, 2018
377:for $ 725 million.
317:Kelso & Company
247:Number of employees
21:
1131:Bogaisky, Jeremy.
905:Cision PR Newswire
466:, November 9, 2023
109:Douglas W. Peacock
106:W. Nicholas Howley
19:
955:978-1-57311-123-2
836:The Seattle Times
698:978-1-4221-6267-5
418:COVID-19 pandemic
305:Corporate history
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239:US$ −1.98 billion
219:US$ 19.97 billion
199:US$ 1.299 billion
179:US$ 2.923 billion
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863:. 2022-03-16
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257: (2023)
241: (2023)
228:Total equity
221: (2023)
208:Total assets
201: (2023)
181: (2023)
161: (2023)
117:Headquarters
34:Company type
1233:SEC filings
1209:. CBS News.
861:HeliHub.com
643:(2): 7–11.
551:|work=
64:S&P 500
1250:Categories
1191:2024-07-08
1166:2024-07-08
1142:2024-07-08
1113:October 7,
1091:October 7,
1069:October 7,
1040:October 7,
1012:October 7,
983:October 7,
928:2023-11-09
867:2022-03-16
841:October 7,
815:October 7,
789:October 7,
760:October 7,
730:October 7,
704:October 7,
670:October 7,
616:October 7,
491:October 7,
444:References
188:Net income
129:Key people
1186:cleveland
665:154809631
553:ignored (
543:cite book
525:Transdigm
361:Esterline
355:in 2006.
301:in 2006.
267:transdigm
66:component
46:Traded as
657:43503167
384:Products
368:Montreal
100:Founders
74:Industry
1064:Fortune
1035:Fortune
783:Reuters
375:Calspan
297:on the
262:Website
147:Revenue
90: (
82:Founded
57::
1238:Yahoo!
1228:Google
1137:Forbes
952:
695:
663:
655:
531:
437:Airbus
433:Boeing
123:, U.S.
38:Public
661:S2CID
653:JSTOR
1115:2020
1093:2020
1071:2020
1042:2020
1014:2020
985:2020
950:ISBN
843:2020
817:2020
791:2020
762:2020
732:2020
706:2020
693:ISBN
672:2020
618:2020
555:help
529:ISBN
493:2020
435:and
269:.com
157:US$
92:1993
85:1993
55:NYSE
645:doi
59:TDG
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