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.