Triumph Group Announces Completion of Agreement with Spirit AeroSystems to Assume Production of Gulfstream G650 and G280 Wing Programs
Triumph Group, Inc. (NYSE:TGI) today announced the closing of the previously announced agreement with Spirit AeroSystems Holdings, Inc. (NYSE:SPR) (“Spirit”) to take over production of the Gulfstream G650 and G280 wing programs located in Tulsa, Oklahoma, effective December 30, 2014. The business will operate as Triumph Aerostructures-Vought Aircraft Division-Tulsa and will be included in the Aerostructures Group segment. Under the terms of the agreement, Triumph received $160 million in cash plus assets required to run the business from Spirit to cover the anticipated future cash flow needs of the programs, with no additional capital contributions expected by Triumph. The business is expected to add approximately $250 million in annual revenue and to be immediately accretive to earnings per share, reflecting initial estimates of purchase accounting adjustments and excluding synergies resulting from the transaction and transaction related expenses. Triumph will update its fiscal year 2015 guidance to reflect the financial impact of the work transfer when it releases its third quarter fiscal year 2015 earnings in January.
Jeffry D. Frisby, Triumph’s President and Chief Executive Officer, said, “We are pleased to have completed the transfer of the Gulfstream wing programs from Spirit and are excited about what this transaction means to our business, our employees, our customers and our shareholders. The addition of these programs further establishes Triumph as a leader in fully integrated wing design, engineering and production and advances our standing as a strategic Tier One Capable aerostructures supplier. Moreover, these programs improve our customer balance and program and platform diversity within our Aerostructures segment. We are confident that we can execute these programs effectively and look forward to working with the outstanding group of employees in Tulsa to drive improvements and deliver long term value from these programs.”
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Source : Triumph Group, Inc. - view original press release