Triumph Group To Acquire Vought Aircraft
Wayne, Pa.-based Triumph Group today announced a deal to acquire Vought Aircraft Industries from The Carlyle Group for cash and stock consideration of $1.44 billion, including the retirement of Vought debt. Following the closing, expected to occur in July, Carlyle will own some 31 percent of the outstanding stock of Triumph. The purchase consideration to Vought shareholders includes some 7.5 million shares and $525 million in cash. The acquired business will operate as Triumph Aerostructures–Vought Aircraft Division.
Coincidentally, Vought reported increased fourth-quarter earnings today due primarily to sales associated with the Boeing 747-8 program. Net income also increased due to the absence of costs related to the strike at the company’s Nashville facility in 2008. Revenue for last year’s fourth quarter rose $142.5 million, to $555.5 million, or 35 percent. The 747-8 program accounted for $136 million, or 81 percent, of commercial revenue. Meanwhile, business jet revenue fell by $14.5 million, or 19 percent, due primarily to reduced delivery rates directed by customers. Finally, military revenue jumped $21 million, or 13 percent, due mainly to increased deliveries on the V-22 and C-130 programs.