Author Topic: TDG - Transdigm  (Read 146182 times)



walkie518

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Re: TDG - Transdigm
« Reply #401 on: June 12, 2019, 11:41:59 AM »
they just increased the threshold on the grounds that doing so would create a more competitive environment for small business?!

this is a little backwards...going to be like plugging a hole in a sinking boat?

I bet the cost of parts on the uptake moves materially higher on the initial bid ... 

Spekulatius

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Re: TDG - Transdigm
« Reply #402 on: June 12, 2019, 04:21:47 PM »
they just increased the threshold on the grounds that doing so would create a more competitive environment for small business?!

this is a little backwards...going to be like plugging a hole in a sinking boat?

I bet the cost of parts on the uptake moves materially higher on the initial bid ...

Sector needs more competition. At least they should block these guys from future acquisitions and they should probably encourage bids from smaller competitors. I think they have all the tools they need to get this done, they just need to execute on this. The purchasing managers of the army/navy/air force often don’t exercise their power, because they are looking at a 2nd career Job in the same industry. It’s a clubby business.
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Liberty

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Re: TDG - Transdigm
« Reply #403 on: June 19, 2019, 10:30:10 AM »
New Scuttleblurb post on TDG (subscription required):

https://www.scuttleblurb.com/tdg/
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Liberty

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Re: TDG - Transdigm
« Reply #404 on: July 22, 2019, 05:43:39 AM »
http://transdigmgroupinc.gcs-web.com/news-releases/news-release-details/transdigm-group-plans-divest-souriau-sunbank-connection

Quote
TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, announced today that it has received a binding offer pursuant to a put option agreement (the "Put Agreement") from Eaton Corporation plc (NYSE:ETN) for the acquisition by Eaton of the business of Souriau-Sunbank Connection Technologies (Souriau-Sunbank) in a transaction valued at approximately $920 million.  Pursuant to the terms of the Put Agreement, after completion of the consultation process with Souriau's French works councils, TransDigm (through its subsidiaries) will have the right to require Eaton to enter into a securities purchase agreement providing for the purchase by Eaton of the shares of the Souriau-Sunbank companies.  In addition to the consultation with Souriau's French works councils, the transaction is subject to execution and delivery of the securities purchase agreement and other definitive agreements and customary closing conditions, including receipt of required regulatory approvals.
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ValueMaven

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Re: TDG - Transdigm
« Reply #405 on: September 22, 2019, 04:25:30 PM »
wow this thing has really run up.  Remarkable actually

khturbo

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Re: TDG - Transdigm
« Reply #406 on: September 24, 2019, 12:51:27 PM »
Market is starting to realize just how accretive the ESL deal is going to be, I think. I was surprised it wasn't up a lot on the initial announcement given their track record on improvements on M&A.

ValueMaven

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Re: TDG - Transdigm
« Reply #407 on: January 12, 2020, 05:33:15 PM »
anyone have any updated thoughts on TDG from a valuation and/or business perspective?  Trading at 26x EBITDA (!) 

I get it: management, compounder, margin improvement with very low float ... but wow --- this thing is stretched.  What is the next catalyst higher??

cmlber

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Re: TDG - Transdigm
« Reply #408 on: January 12, 2020, 05:49:50 PM »
anyone have any updated thoughts on TDG from a valuation and/or business perspective?  Trading at 26x EBITDA (!) 

I get it: management, compounder, margin improvement with very low float ... but wow --- this thing is stretched.  What is the next catalyst higher??

Not sure what #s you're looking at, I have it at about 26x FY20 earnings, not EBITDA.  I think business as usual is the catalyst higher: 3-4% price, 3-4% volume, + some margin expansion and layer on leverage and special dividends.

5xEBITDA

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Re: TDG - Transdigm
« Reply #409 on: January 13, 2020, 09:04:08 AM »
16.5x fwd. EV / EBITDA per BBG.