Triumph Group Inc. (NYSE:TGI) announced Jan. 29 a definitive agreement to sell Triumph Fabrications to Arlington Capital Partners. The operations included in the agreement are in Fort Worth; Hot Springs, Arkansas; Phoenix; San Diego; and Shelbyville, Indiana.
“With the sale of our fabrications businesses, Triumph continues to execute on our transformation plan by streamlining our portfolio and exiting legacy build-to-print, contract manufacturing businesses to generate shareholder value,” said Dan Crowley, Triumph Group President and CEO, based in Berwyn, Pennsylvania. “Today’s announcement to divest non-core businesses such as Triumph Fabrications advances our strategy to focus on areas of growth and value creation, such as our Integrated Systems and Aftermarket businesses, while reducing our footprint and eliminating excess capacity and fixed costs. Importantly, we believe Arlington Capital Partners will make the necessary investments into the Fabrications business to accelerate its growth as a more focused operation.”
The Fort Worth facility is located at 7445 E Lancaster Ave. and is 145,000 square feet and last reported an employee count of about 150.
Triumph Fabrications consists of four independent companies, which operate in five locations throughout the U.S. These sites encompass more than 1 million square feet of factory space dedicated to the aerospace industry by supporting complex sheet metal components and assemblies for fixed wing and rotorcraft platforms. The businesses offer forming, assembly and special processing solutions such as stretch, hydro, titanium hot/super plastic forming, bonding, bulge and drop hammer forming as well as chemical milling, welding, auto riveting, titanium Sol-Gel, anodizing and other coating processes. Combined, the businesses generated revenues of approximately $150 million during Triumph Group’s fiscal year ended March 31, 2018. No price for the transaction was released.
Since 2016, Triumph has divested 10 non-core businesses, including this latest announcement, as part of its transformation efforts to de-lever the company, enhance margins and position the company for long-term success.
The transaction is subject to customary closing conditions and is expected to close in the next few months. Following the close of the transaction, the business will retain its management, technical and supporting staff, and will continue operations at the current facilities.
Triumph also has manufacturing facilities in Arlington and Grand Prairie.
Arlington Capital Partners is a Washington, D.C.-area private equity firm that has managed $2.2 billion of committed capital via four investment funds, including Arlington Capital's fourth and most recent $700 million fund. Arlington Capital is focused on middle market investment opportunities in growth industries, including: aerospace/defense, government services and technology, healthcare, and business services and software.
Lazard acted as exclusive financial advisor to Triumph on the transaction.