Cleveland-based TransDigm Group (NYSE:TDG) just got a little bit bigger.

On Wednesday, the aerospace components supplier announced that it has agreed to acquire Long Island, N.Y.-based Arkwin Industries in a deal valued at $286 million cash. TransDigm hopes to close its purchase of Arkwin in Q3 2013.

Arkwin, a key supplier to Boeing, Airbus, Bombardier, and also Embraer, and Lockheed and Sikorsky as well, manufactures highly engineered aerospace hydraulic and fuel system components for commercial and military aircraft -- with revenues split roughly 50-50 between the two. Primarily an OEM supplier, Arkwin gets 40% of its commercial revenues from sales of aftermarket parts.

Arkwin did $95 million in business in 2012, giving today's acquisition a valuation of roughly three times sales. That's a significant discount to the valuation investors give TransDigm's own shares -- 4.3 times sales -- suggesting TransDigm is buying the company at a discount.

Investors seem to be taking that view, at least. Shares of TransDigm are up 3% on news of the Arkwin purchase, closing at $154.69.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends TransDigm Group. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.