TransDigm Group Inc ( TDG ) has entered a definitive agreement to acquire Raptor Labs Holdco, LLC, a company owned by L Squared Capital Partners. 

The acquisition, valued at approximately $655 million in cash, includes certain tax benefits.

Raptor Scientific is a global manufacturer of complex test and measurement solutions primarily serving the aerospace and defense end markets. Nearly all of its revenue comes from proprietary products, with significant aftermarket content.

Raptor Scientific, expected to generate $90 million in revenue by the end of 2024, employs around 170 people across various U.S. locations.

Kevin Stein, President and CEO of TransDigm ( TDG ), said, “The Company’s comprehensive proprietary and highly engineered product portfolio of aerospace and defense testing and instrumentation solutions fits well with our value generation strategy.”

The deal is pending regulatory approvals in the U.S. and other customary closing conditions. TransDigm ( TDG ) plans to finance the acquisition using existing cash reserves. The company held $4.8 billion in cash and equivalents as of March 30, 2024.

TransDigm Group ( TDG ) is a producer and supplier of engineered aerospace components, systems, and subsystems.

Price Action: TDG shares are trading lower by 0.86% at $1,338.74 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.