Triumph Group Buying General Donlee Canada

Berwyn, Pa.-based Triumph Group (NYSE: TGI  ) is expanding farther into Canada.

On Thursday, Triumph Group announced that it has agreed to buy Toronto-based flight-critical, precision-machined components-maker General Donlee Canada for $110 million cash. After the purchase, slated for Q3 2014, Triumph intends to incorporate General Donlee, and its $60 million revenue stream, into Triumph's Aerospace Systems Group. The purchase will grow the Aerospace Systems Group by about 10% in size.

General Donlee also manufactures parts for the nuclear and oil and gas industries, and Triumph CEO Jeffry D. Frisby notes that this purchase will help to diversify Triumph's customer base. Even so, Triumph is buying General Donlee primarily for its "strong position in engine and main rotor shafts."

Triumph is paying a high price for the purchase, however. The $110 million spent to acquire General Donlee's equity and retire its debt works out to about 1.8 times the new subsidiary's sales. Triumph's own shares sell for only 1x sales on the open market.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2597511, ~/Articles/ArticleHandler.aspx, 7/26/2014 2:33:23 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement