WAYNE, Pa., Jun 16, 2010 (BUSINESS WIRE) --Triumph Group, Inc. (NYSE:TGI)
today announced the completion of the acquisition of Vought Aircraft
Industries, Inc. from The Carlyle Group, creating a company with
industry-leading breadth of product and capabilities. The acquired
business will continue to be led by Elmer L. Doty and will operate as
Triumph Aerostructures-Vought Commercial Division and Triumph
Aerostructures-Vought Integrated Programs Division. For fiscal year
2011, earnings accretion is expected to be approximately $1.10 per
diluted share, which reflects initial estimates of purchase accounting
adjustments and excludes transaction and integration expenses and
expected synergies resulting from the acquisition. The company expects
to generate annual recurring synergies of approximately $12 to $15
million within the first twelve to eighteen months. The company will
update its fiscal year 2011 guidance for the inclusion of Vought when it
releases its first quarter fiscal year 2011 earnings in July.
Based in Dallas, Texas, Vought is a leading global manufacturer of
aerostructures for commercial, military and business jet aircraft.
Products include fuselages, wings, empennages, nacelles and helicopter
cabins. Vought's customer base is comprised of the leading global
aerospace original equipment manufacturers and over 80% of their revenue
is from sole source, long-term contracts. Major platforms include the
Boeing 747-8, Boeing 767, Boeing 777, Airbus A330/340, Boeing C-17,
Boeing V-22, Northrop Grumman Global Hawk and Gulfstream G450 and G550.
Richard C. Ill, Triumph's Chairman and Chief Executive Officer, said,
"We are pleased to have acquired Vought and are excited about what the
acquisition means to our business, our employees, our customers and our
shareholders. Through this acquisition, we obtain world-class
facilities, advanced technical capabilities and an outstanding group of
employees. The integration of Vought with Triumph creates a leading
'Tier One Capable' supplier with the scale and resources necessary to
confidently meet the changing needs of the aerospace industry."
In connection with the acquisition of Vought, Triumph refinanced its
revolving credit facility, entered into a $350 million term loan credit
agreement and issued $350 million of 8.625% Senior Notes due 2018.
Triumph also announced today that it has expanded the size of its board
of directors to nine from six and appointed Elmer L. Doty, Ralph E.
Eberhart and Adam J. Palmer to its board of directors, effective today
upon the closing of the Vought acquisition.
The above matters will be described more fully in public filings to be
made by Triumph with the Securities & Exchange Commission, which filings
will be made available on Triumph's website at www.triumphgroup.com
under the tab "Investor Relations" and then under the heading "SEC
Triumph Group, Inc., headquartered in Wayne, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls aircraft components and
accessories. 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
More information about Triumph can be found on the company's website at http://www.triumphgroup.com.
Forward Looking Statements
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1955. These
forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause Triumph's actual
results, performance, or achievements to be materially different from
any expected future results, performance, or achievements. Such
forward-looking statements include, but are not limited to, statements
about the benefits of the business combination transaction involving
Triumph and Vought, including future financial and operating results,
the new company's plans, objectives, expectations and intentions and
other statements that are not historical facts. The following factors,
among others, could cause actual results to differ from those set forth
in the forward-looking statements: the risk that the cost savings and
any other synergies from the transaction may not be fully realized or
may take longer to realize than expected; the risk that the integration
process results in the loss of key employees, the disruption of the
company's ongoing business or inconsistencies in standards, controls,
procedures and policies that adversely affect the company's ability to
maintain relationships with customers, employees or suppliers; the risk
that integration efforts divert management's attention and resources
during the transition period and competition and its effect on pricing,
spending, third-party relationships and revenues. For more information,
see the risk factors described in Triumph's current Form 10-K and other
SOURCE: Triumph Group, Inc.
Triumph Group, Inc.
Sheila Spagnolo, Vice President