DDC to sell for $1 billion; joining TransDigm commercial and military avionics component supplier
BOHEMIA, N.Y., 27 May 2016. Data Device Corp. (DDC) in Bohemia, N.Y., which specializes in aerospace and defense networking, power, and motion control, is joining TransDigm Group Inc. in Cleveland, which focuses on avionics components, systems and subsystems for commercial and military aircraft.
Leaders of DDC announced this week that their company's owner, Behrman Capital, a private equity investment firm, has agreed to sell DDC to TransDigm Group for $1 billion.
Presumably DDC would join TransDigm Group's wholly owned subsidiaries of aircraft component suppliers that include Avionic Instruments LLC in Avenel, N.J.; Champion Aerospace LLC in Liberty, S.C.; Hartwell Corp. in Placentia, Calif.; Shield Restraints in Elkhart, Ind.; Nordisk Aviation in Holmestrand, Norway; and Semco Instruments Inc. in Valencia, Calif.
TransDigm parts are original aircraft equipment, which generate recurring aftermarket revenue over the lives of the aircraft, which average about 30 years, company officials say.
About 55 percent of TransDigm's revenues come from aftermarket sales, and more than 90 percent of the company's sales are proprietary products. About 75 percent of TransDigm sales involve sole-source supplier sales.
Other TransDigm subsidiaries are Acme Aerospace Inc. in Tempe, Ariz.; Adams Rite Aerospace Inc. in Fullerton, Calif.; ADS/Transicoil LLC in Collegeville, Pa.; AeroControlex Group in South Euclid, Ohio; Aero Fluid Products in Painesville, Ohio; Aerosonic Corp. in Clearwater, Fla.; Airborne Systems in Pennsauken, N.J.; Airborne Systems UK in Bridgend, Wales; AvtechTyee in Everett, Wash.; Bruce Aerospace Inc. in Dayton, Nev.; and CDA InterCorp LLC in Deerfield, Fla.
Additional TransDigm subsidiaries are CEF Industries Inc. in Addison, Ill.; Dukes Aerospace Inc. in Northridge, Calif.; Electromech Technologies in Wichita, Kan.; Elektro-Metall in Ingolstadt, Germany; HARCO in Branford, Conn.; MarathonNorco Aerospace Inc. in Waco, Texas; Pexco Aerospace Inc. in Union Gap, Wash.; Schneller in Kent, Ohio; Skurka Aerospace Inc. in Camarillo, Calif.; Technical Airborne Components (TAC) in Milmort, Belgium; Telair International in Miesbach, Germany; Telair U.S. in Goldsboro, N.C.; and Whippany Actuation Systems in Whippany, N.J.
DDC, meanwhile, specializes in high-reliability databus, motion control, and solid-state power controller products for aerospace and defense aircraft, land vehicles, and industrial applications. DDC engineers focus on size, weight, and power (SWaP) benefits.
The company offers high-reliability MIL-STD-1553, ARINC 429, and similar data bus networking; as well as power technologies such as solid-state power controllers, motor drives and controls, and synchro/resolver interfaces.
Behrman bought DDC parent ILC Industries in 2003, and since then made four strategic add-on acquisitions, six dividend recapitalizations, and the tax-free spin-off of its ILC Dover business. DDC president and CEO Vincent Buffa joined the company in 2011.
"The Behrman team not only invested the financial resources we needed to execute our growth strategy, but also provided invaluable operational expertise and strategic insight into our business and markets," Buffa says.
"The DDC value creation story is an exciting one and we believe the business is exceptionally well-positioned for further growth under its new ownership," says Grant Behrman, managing partner of Behrman Capital.