BERWYN, Pa.--(BUSINESS WIRE)--Jan. 5, 2015--
Triumph Group, Inc.(NYSE:TGI) today announced the closing of the
previously announced agreement with Spirit AeroSystems Holdings, Inc.
(NYSE:SPR) (“Spirit”) to take over production of the Gulfstream G650 and
G280 wing programs located in Tulsa, Oklahoma, effective December 30,
2014. The business will operate as Triumph Aerostructures-Vought
Aircraft Division-Tulsa and will be included in the Aerostructures Group
segment. Under the terms of the agreement, Triumph received $160 million
in cash plus assets required to run the business from Spirit to cover
the anticipated future cash flow needs of the programs, with no
additional capital contributions expected by Triumph. The business is
expected to add approximately $250 million in annual revenue and to be
immediately accretive to earnings per share, reflecting initial
estimates of purchase accounting adjustments and excluding synergies
resulting from the transaction and transaction related expenses. Triumph
will update its fiscal year 2015 guidance to reflect the financial
impact of the work transfer when it releases its third quarter fiscal
year 2015 earnings in January.
Jeffry D. Frisby, Triumph’s President and Chief Executive Officer, said,
“We are pleased to have completed the transfer of the Gulfstream wing
programs from Spirit and are excited about what this transaction means
to our business, our employees, our customers and our shareholders. The
addition of these programs further establishes Triumph as a leader in
fully integrated wing design, engineering and production and advances
our standing as a strategic Tier One Capable aerostructures supplier.
Moreover, these programs improve our customer balance and program and
platform diversity within our Aerostructures segment. We are confident
that we can execute these programs effectively and look forward to
working with the outstanding group of employees in Tulsa to drive
improvements and deliver long term value from these programs.”
Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aerostructures, aircraft components, accessories, subassemblies and
systems. The company serves a broad, worldwide spectrum of the aviation
industry, including original equipment manufacturers of commercial,
regional, business and military aircraft and aircraft components, as
well as commercial and regional airlines and air cargo carriers.
More information about Triumph can be found on the company’s website at www.triumphgroup.com.
Statements in this release which are not historical facts are
forward-looking statements under the provisions of the Private
Securities Litigation Reform Act of 1995. All forward-looking statements
involve risks and uncertainties which could affect the company’s actual
results and could cause its actual results to differ materially from
those expressed in any forward looking statements made by, or on behalf
of, the company, including statements of expected revenues, cash
utilization, synergies, accretion to earnings, profitability, program
life or future business growth or development. Further information
regarding the important factors that could cause actual results to
differ from projected results can be found in Triumph Group’s reports
filed with the SEC, including our Annual Report on Form 10-K for the
fiscal year ended March 31, 2014.
Source: Triumph Group, Inc.
Triumph Group, Inc.
Sheila G. Spagnolo
Vice President, Tax &