TransDigm Group has entered into a definitive agreement to acquire Esterline Technologies Corporation for about USD4 billion.
Announced on 10 October the company will acquire all outstanding shares of common stock for USD122.5 per share in cash, which it claims is a 38% premium on Esterline's closing price on 9 October.
The USD4 billion agreement includes an assumption of debt, and TransDigm says it expects the purchase to be financed primarily through cash on hand of about USD2 billion and the incurrence of new term loans, adding that it currently anticipates the acquisition to be "modestly accretive" to TransDigm's adjusted earnings per share within the first year of ownership.
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