Triumph Group Inc.
), a leader in aerospace markets, plans to acquire Goodrich Pump
& Engine Control Systems (GPECS) business from
United Technologies Corporation
GPECS supports the helicopters, business jets, commercial,
military markets with the supply of aerospace fuel systems. The
strategic deal will help Triumph to diversify in its offerings to
the existing clientele with the proprietary offerings of GPECS as
well as set foot in newer markets, where GPECS has a good hold
The acquisition is expected to close by March 2013, subject to
regulatory approvals. Subsequent to the acquisition, the acquired
unit will be included in the Aerospace Systems Group of Triumph
and will operate as Triumph Engine Control Systems, LLC. GPECS is
expected to contribute roughly $195 million to Triumph's annual
revenue starting from the day of completion.
Triumph seems to be on an acquisition spree; in December last
year it announced the acquisition of Embee Incorporated. Revenue
contribution from this acquisition will also be included under
Triumph's Aerospace Systems Group.
The quarterly results for the company are due by the end of
this month. As per Zacks Consensus Estimate earnings per share of
$1.41 are expected. Triumph currently has an average quarterly
earnings surprise of 17.2% over the last four quarters, much
lower than its competitor
Lockheed Martin Corporation
), with an average quarterly surprise of 23.2%, over the same
Triumph designs, engineers, manufactures, repairs and
overhauls aircraft components. The company also processes,
distributes and fabricates metal products. The stock currently
holds a Zacks Rank #1 (Strong Buy), whereas Lockheed holds a
Zacks Rank #2 (Buy). Also, the company's competitor,
Teledyne Technologies Inc.
), with an average quarterly earnings surprise of 10.5% over the
last four quarters, holds a Zacks Rank #2 (Buy).
LOCKHEED MARTIN (LMT): Free Stock Analysis
TELEDYNE TECH (TDY): Free Stock Analysis
TRIUMPH GRP INC (TGI): Free Stock Analysis
UTD TECHS CORP (UTX): Free Stock Analysis
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