Triumph Group, Inc. ( TGI ) declared that it has acquired North America Aircraft Services, Inc. (NAAS), following the company's growth acceleration strategy in its aftermarket business.
The newly made acquisition is expected to be immediately accretive to earnings and contribute $35.0 million to the annual revenue.
The acquired business will be part of Aftermarket Services Group of Triumph and will operate under the name Triumph Aviation Services - NAAS Division.
NAAS is based in Texas and primarily provides services related to plane-side aircraft fuel systems. It provides services such as aviation maintenance repair and overhaul (MRO), fuel leak detection and ground support maintenance among others. It also caters to the needs of big defense players like The Boeing Co. ( BA ), Airbus and Northrop Grumman Corp. ( NOC ).
The acquisition will spell boon for the company as Triumph Group will now be able to deal globally with NAAS' extensive network of global MRO locations. It will be able to provide a varied range of services to its global customers, thereby increasing the scope of future growth. Thus, this acquisition will create opportunities for optimizing the company's segment and creating customer balance.
The company had previously acquired the hydraulic actuation business of GE Aviation, a subsidiary of General Electric Co. ( GE ), for $70 million in 2014. It had also completed a number of significant acquisitions, including the Insulfab product line from Chase Corp. and General Donlee Canada Inc. in 2013.
Triumph Group has continuously expanded its product base through acquisitions and addition of products and services. This will enable the company to boost its future performance.
Triumph Group currently holds a Zacks Rank #3 (Hold).
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