TransDigm to pay $1.4 billion in cash to buy CPI’s electron device business from

TransDigm Group Inc.
TDG,
+8.25%
announced Thursday an agreement to buy the Electron Device Business from TJC L.P.’s Communications & Power Industries for $1.39 billion in cash. The EDC makes components and subsystems for the aerospace and defense markets. The deal, which is expected to close in Transdigm’s fiscal third quarter (ending June) of 2024, will be funded through existing cash and new long-term debt. Shares of the aerospace components maker, with a $49.4 billion market-capitalization were still inactive in premarket trading. They have run up 42.2% year to date, while the S&P 500
SPX,
-0.48%
has advanced 14.2%.