Aerospace supplier Triumph to sell its components aftermarket business for $725 mln

Triumph

21/12/2023 14:50

Dec 21 (Reuters) - Aerospace supplier Triumph Group
 TGI.N  said on Thursday it would sell its components
aftermarket business that makes structures, airframes and engine
accessories to AAR Corp  AIR.N  for $725 million, sending its
shares up by 23.7% in early trading.
    The move will help Triumph, which counts Boeing and Airbus
as customers, to cut down debt and focus on its key business of
making aircraft parts, spares and intellectual property-based
aftermarket businesses.
    Pennsylvania-based Triumph has been working to strengthen
its balance sheet and improve cash flow as suppliers ramp up
production buoyed by robust demand for commercial jets as air
travel rebounds post-pandemic.
    "The addition of this high-margin business is expected to
further increase our operating margin and is expected to be
accretive to our earnings," AAR Corp CEO John Holmes said in a
statement.
    The companies said the deal will close in the first half of
2024.
    Shares of AAR were up 3% in morning trade.

 (Reporting by Abhinav Parmar in Bengaluru;Editing by Ravi
Prakash Kumar)
 ((Abhinav.Parmar@thomsonreuters.com;))