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Triumph Acquires Embee - Analyst Blog

Triumph Group Inc. ( TGI ), a leading provider of aircraft components, announced its acquisition of Embee Incorporated. Embee is a leading commercial metal finishing provider which offers more than seventy metal finishing, inspecting and testing processes, primarily for the aerospace industry.

Subsequent to the purchase, the acquired business will function as Triumph Processing - Embee Division, Inc. The revenue derived from the business will be recorded under the Aerospace Systems Group of Triumph. The acquisition is expected to add approximately $50.0 million to Triumph's revenue annually and boost the earnings from the very beginning.

Established in 1948, Embee is located in Santa Ana, California; and operates with a strength of approximately 400 employees. The company offers start-to-finish production capabilities to meet any metal finishing needs. It offers more than seventy metal-finishing, inspection and testing processes, chiefly to the aerospace industry along with electronics, medical devices and automotive manufacturing industries. Embee has been awarded AS 9100 and Nadcap certifications, and granted OEM approvals by the world's largest military and commercial contractors.

According to Triumph's President and Chief Executive Officer, Jeffry D. Frisby, the acquisition can be viewed as a strategic move to expand the aerospace segment and prosper in the future. The acquisition is also regarded as an opportunity to enhance the current capabilities and provide comprehensive processing services on precision engineered parts for hydraulics, landing gear, spare parts and electronic actuation systems.

Triumph designs, engineers, manufactures, repairs and overhauls aircraft components. The stock currently holds an Outperform rating. Triumph Group holds a Zacks #1 Rank, which translates into a short-term 'Strong Buy' rating (1-3 months).

The company faces stiff competition from its peers, such as AAR Corp. ( AIR ) and United Technologies Corp. ( UTX ); both hold a Zacks #3 Rank, translating into a short-term 'Hold' rating.

AAR CORP (AIR): Free Stock Analysis Report

TRIUMPH GRP INC (TGI): Free Stock Analysis Report

UTD TECHS CORP (UTX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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