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|Triumph Group Announces Acquisition|
WAYNE, Pa.--(BUSINESS WIRE)--Nov. 25, 2002--Triumph Group, Inc. (NYSE:TGI) announced today the signing of an agreement to purchase the assets of The Boeing Company's Spokane Fabrication Operation, located in Spokane, Washington.
The agreement is subject to the successful negotiation and ratification of new collective bargaining agreements. The acquired business is projected to add approximately $60 million of revenue for fiscal 2003 and be accretive to earnings.
About 400 employees currently work at the Spokane plant. Built in 1990, the Spokane facility is dedicated to the production of aircraft parts made of composite and thermoplastic materials. Primary products include floor panels, air control system ducts and non-structural composite flight deck components.
As part of the transaction, Triumph and Boeing will enter into an eight-year single source supply agreement for the products currently produced by the Spokane facility.
Richard C. Ill, President and Chief Executive Officer of Triumph Group, Inc. said, "We are pleased to have been selected to acquire Boeing's Spokane Fabrication Operation. The Spokane operation meshes extremely well with our strategy to increase the value added products and services provided to our customers. Spokane's experience in providing fully kitted assemblies directly to the factory floor at Boeing will be expanded to other products produced by Triumph and delivered to Boeing. Given the high quality of Spokane's products, we intend to expand sales beyond Boeing to other aircraft manufacturers and to pursue the aftermarket sale of floor panels to operators of Boeing aircraft worldwide. Spokane is a world class manufacturing operation with a culture that embraces lean systems. We plan to establish Spokane as Triumph's lean systems learning center, which should benefit all Triumph operations."
While part of Boeing, the Spokane facility reported to Mary Armstrong, Vice President & General Manager of Boeing Commercial Airplanes Aircraft Systems & Interiors. With respect to the transaction, Ms. Armstrong stated, "We are pleased to announce a solution that enables the Spokane facility to continue to operate in Eastern Washington. Triumph is a valued supplier with a long, positive history with Boeing so we are confident that Triumph will be a good employer and a strong leader in the Spokane community."
Triumph Group, Inc. headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and industrial gas turbine components and accessories.
The Company serves a broad, worldwide spectrum of the aviation industry, including commercial airlines and air cargo carriers, as well as original equipment manufacturers of aircraft and aircraft components and power generation equipment. The Company also distributes, processes and fabricates metal products.
More information about Triumph can be found on the World Wide Web Site at http://www.triumphgroup.com.
Statements which are not historical facts, including statements regarding the effect of this acquisition on the Company's sales growth in the aircraft manufacturing industry and aftermarket and its ability to successfully take advantage of new manufacturing systems, contained in this release are forward-looking statements under the provision of the Private Securities Litigation Reform Act of 1995.
All forward-looking statements involve risks and uncertainties including statements regarding the outlook for continued opportunities for future growth. The company wishes to caution readers that several important factors 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.
Further information regarding the important factors that could cause actual results to differ from projected results can be found in Triumph's reports filed with the SEC, including our Form 10-K for the year ended March 31, 2002.