TransDigm Group Stock Rises As Buyouts Are Paying Off

But over the last year or so the company has stepped up its buyout pace with a series of big and small deals that have added everything from temperature systems and flight test equipment to air bags, seat belts and lavatory flooring.Since August 2011, TransDigm has spent more than $1.1 billion on four buyouts.Factors to Consider About Hardwood Flooring .The latest came in September, when the company dished out $35 million to acquire Aero-Instruments, a Cleveland-based supplier of air data sensors, flight test equipment and other gear.

The biggest deal, which closed in February, was TransDigm's buy of Phoenix-based AmSafe Global Holdings for $750 million. AmSafe is best known for its proprietary aviation passenger seat belts and air bags. Its products are installed on more than 90% of the aircraft produced globally.The AmSafe acquisition was a particularly expensive one for TransDigm, which didn't pass the $1 billion mark in annual revenue until fiscal year 2011.Still, it's the kind of deal that has helped TransDigm establish a leading position in many aircraft parts markets, watchers say.

Moreover, AmSafe has a leading position in its niche market. In a recent report, Zacks Equity Research noted that AmSafe "is the only company to have a seat belt air bag system installed worldwide on both commercial transport and general aviation aircraft."That same report also praised the Aero-Instruments deal. Zacks called Aero "a strategic fit for TransDigm," citing the fact that 56% of Aero's net sales come from the aftermarket, mainly from the commercial and military sectors.