TransDigm Group Inc.
) recently announced that it completed the acquisition of
Aerosonic Corporation (
by purchasing all its outstanding shares for $7.75 per share in
cash. The all-cash transaction aggregated approximately $39
TransDigm's indirect wholly-owned subsidiary, Buccaneer had
earlier announced a cash tender offer for acquiring Aerosonic
shares, which expired on Jun 4, 2013. With successful completion
of this offer, 3,553,830 shares were validly tendered, which
represents approximately 88.4% of the total outstanding
Concurrent with this tender offer, Buccaneer also announced
its intentions to utilize the top-up options, which allows it to
buy additional shares of Aerosonic for a total ownership of 90%.
However, this will also allow a provision for a short form merger
of the two transacting parties, without the voting approval from
other stockholders as per the Delaware Law.
With this merger, Buccaneer will amalgamate into Aerosonic and
cease to exist as a separate entity while Aerosonic will emerge
as a wholly-owned subsidiary of Transdigm, thereafter.
The acquisition is a strategic move by TransDigm as
Aerosonic's operations and products perfectly complement its
existing portfolio. Through this acquisition, TransDigm will be
able to leverage Aerosonic's proprietary air data and display
technologies with the help of its broad market presence and
financial strength, thereby enhancing its growth prospects.
Apart from product line synergies, with Aerosonic on board,
TransDigm will further strengthen its relations with its
important customers like the U.S. government and
TransDigm currently has a Zacks Rank #3 (Hold). Two other
companies operating in the same industry and worth considering at
the moment are
Kratos Defense & Security Solutions, Inc. (
Astronics Corporation (
both with a Zacks Rank #1 (Strong Buy)
AEROSONIC CORP (AIM): Get Free Report
ASTRONICS CORP (ATRO): Free Stock Analysis
KRATOS DEFENSE (KTOS): Free Stock Analysis
TRANSDIGM GROUP (TDG): Free Stock Analysis
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