TransDigm Is Said to Compete With Buyout Firms for Cobham Unit

TransDigm Group Inc., the $31 billion U.S. aerospace supplier, is competing with buyout funds in the bidding for Cobham Ltd.’s communications and navigation division, people familiar with the matter said.

Cleveland-based TransDigm has advanced to the next round of bidding for Cobham Aerospace Connectivity, according to the people, who asked not to be identified discussing confidential information. Private equity firms Cinven and CVC Capital Partners have also been invited to make final offers, the people said.

The business could fetch between $900 million and $1 billion, the people said. Cobham’s owner, Advent International, aims to pick a winner in the next few weeks, according to the people.

Representatives for Advent, Cinven, Cobham and CVC declined to comment. A representative for TransDigm didn’t immediately respond to requests for comment.

TransDigm makes components, systems and sub-systems for use on commercial and military aircraft. The group is comprised of 50 independent companies, each operating autonomously, according to its website. Around 80% of its sales are generated from products for which it is the sole supplier.

A purchase of Cobham Aerospace Connectivity would add a manufacturer of antenna systems as well as radio, guidance and anti-jamming equipment for use on land, sea and in the air to TransDigm’s stable. The unit has earnings before interest, taxes, depreciation and amortization of about $80 million, people familiar with the matter said in September.

It is one of a number of defense assets currently drawing takeover interest. Northrop Grumman Corp. is selling its technology services division, while Cubic Corp. has been approached by Elliott Management Corp. over a take-private of the company. There have been $22 billion dollars of announced deals in the aerospace and defense industry this year, according to data compiled by Bloomberg.

Advent is working with Goldman Sachs Group Inc. and Rothschild & Co. on the sale of Cobham’s communications and navigation unit, Bloomberg News has reported. The U.S. private equity firm completed its purchase of U.K.-listed Cobham for 4 billion pounds ($5.3 billion) in January.

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.