Back to news

July 19, 2023 | International, Aerospace

F-35 delivery delays to cost Lockheed hundreds of millions in 2023

Software problems with the F-35's Technology Refresh 3 upgrades prompted the Pentagon to halt deliveries of the newest fighters.

https://www.c4isrnet.com/industry/2023/07/19/f-35-delivery-delays-to-cost-lockheed-hundreds-of-millions-in-2023/

On the same subject

  • Contract Awards by US Department of Defense - May 15, 2020

    May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - May 15, 2020

    DEFENSE LOGISTICS AGENCY BAE Systems Controls Inc., Fort Wayne, Indiana, has been awarded a maximum $1,116,966,065 modification (P00014) exercising the five-year option period of a 10-year base contract (SPE4AX-15-D-94l4) with one five-year option period for consumable and depot-level repairables supporting multiple weapon systems platforms. This is a firm-fixed-price requirements prospective price redetermination contract. Locations of performance are Indiana, Texas, Arizona, California, New Jersey, New York and New Hampshire, with a March 22, 2025, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps, Defense Logistics Agency and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Richmond, Virginia. Labatt Food Service, San Antonio, Texas, has been awarded a maximum $78,373,493 fixed-price with economic-price-adjustment, indefinite-quantity contract for full-line food distribution. This was a competitive acquisition with three responses received. This is a two-year base contract with one one-year option period and one two-year option period. Locations of performance are Texas and New Mexico, with a May 10, 2022, performance completion date. Using military services are Air Force, Army, Marine Corps and civilian federal agencies. Type of appropriation is fiscal year 2020 through 2022 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3250). AM General LLC, South Bend, Indiana, has been awarded a maximum $7,042,059 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for diesel cylinder heads. This is a three-year contract with no option periods. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. Location of performance is Indiana, with a May 15, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2023 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0097). AIR FORCE J Davis Construction Management Inc., Oxnard, California (FA8003-20-D-0008); Bishop Inc.,* Orange, California (FA8003-20-D-0009); SMNC Properties LLC, Saint Mary's, Alaska (FA8003-20-D-0011); BC Schmidt Construction Inc.,* Colusa, California (FA8003-20-D-0016); Pacific Federal-Pacific Tech JV 2, Longview, Washington (FA8003-20-D-0010); MIWOK Construction LLC, Las Vegas, Nevada (FA8003-20-D-0012); ENH LLC, Garden Grove, California (FA8003-20-D-0013); Heffler Contracting Group, El Cajon, California (FA8003-20-D-0014); Aleut Field Services LLC, Fairbanks, Alaska (FA8003-20-D-0015); Chatmon-VJR JV LLC, La Place, Louisiana (FA8003-20-D-0017); Good-Men Roofing and Construction Inc.,* San Diego, California (FA8003-20-D-0018); Prairie Band Construction Inc., Mayetta, Kansas (FA8003-20-D-0020); DKJR Roofing LLC,* Le Mars, Iowa (FA8003-20-D-0021); A-Vet Roofing & Construction LLC, Warner Robins, Georgia (FA8003-20-D-0019); PMR Services LLC, Watford City, North Dakota (FA8003-20-D-0022); RSSI Roofing Co.,* Essex, Maryland (FA8003-20-D-0028); Doliveira DJB JV LLC, Annapolis, Maryland (FA8003-20-D-0029); Kunj Construction Corp., Northvale, New Jersey (FA8003-20-D-0030); D.A. Nolt Inc.,* Berlin, New Jersey (FA8003-20-D-0023); Ocean Construction LLC, Marmora, New Jersey (FA8003-20-D-0024); Roofing Resources Inc.,* Kennett Square, Pennsylvania (FA8003-20-D-0025); Carroll's Roofing and Construction LLC, Arlington, Tennessee (FA8003-20-D-0026); Swan Contracting, Peterborough, New Hampshire (FA8003-20-D-0027); ACTS/Meltech JV1 LLC,* Virginia Beach, Virginia, (FA8003-20-D-0031); A-Vet Roofing & Construction LLC, Warner Robins, Georgia, (FA8003-20-D-0032); The Roof & Metal Co., El Paso, Texas (FA8003-20-D-0037); AR6-Cram Roofing JV,* New Braunfels, Texas (FA8003-20-D-0041); Brazos Roofing Intl of South Dakota,* Waco, Texas (FA8003-20-D-0042); CUE Enterprises Inc.,* Jacksonville, Florida (FA8003-20-D-0033); Carmen Express JV LLC,* McKinney, Texas (FA8003-20-D-0034); MIWOK Construction LLC, Las Vegas, Nevada (FA8003-20-D-0035); Platinum Roofing,* Sheridan, Arkansas (FA8003-20-D-0036); ENH LLC, Garden Grove, California (FA8003-20-D-0038); RYCARS Construction LLC,* Kenner, Louisiana (FA8003-20-D-0039); Good-Men Roofing and Construction Inc.,* San Diego, California (FA8003-20-D-0040); Topside Contracting LLC,* San Antonio, Texas (FA8003-20-D-0043); Heffler Contracting Group, El Cajon, California (FA8003-20-D-0044); PMR Services LLC, Watford City, North Dakota (FA8003-20-D-0045); Legacy JV Group LLC,* Warner Robins, Georgia (FA8003-20-D-0046); Advon Construction Corp.,* Tallahassee, Florida (FA8003-20-D-0048); Jordon Construction Co., Greenville, South Carolina (FA8003-20-D-0051); Best Value Management LLC,* Jacksonville, Florida (FA8003-20-D-0056); Associates Roofing & Construction Inc.,* Murrells Inlet, South Carolina ((FA8003-20-D-0057); Yerkes South-Advanced Roofing Inc., Crestview, Florida (FA8003-20-D-0060); Inland Construction and Engineering,* Panama City, Florida (FA8003-20-D-0067); Legacy JV Group LLC,* Warner Robins, Georgia (FA8003-20-D-0047); Carmen Express JV LLC,* McKinney, Texas (FA8003-20-D-0049); D.A. Nolt Inc.,* Berlin, New Jersey (FA8003-20-D-0050); Ocean Construction LLC, Marmora, New Jersey (FA8003-20-D-0052); Pacific Federal-Pacific Tech JV 1, Longview, Washington (FA8003-20-D-0053); Platinum Roofing,* Sheridan, Arkansas (FA8003-20-D-0054); Topside Contracting LLC,* San Antonio, Texas (FA8003-20-D-0055); Chatmon-VJR JV LLC, La Place, Louisiana (FA8003-20-D-0058); Ames1 DayNight JV, Anchorage, Alaska (FA8003-20-D-0059); ACTS/Meltech JV1 LLC,* Virginia Beach, Virginia (FA8003-20-D-0061); RYCARS Construction LLC,* Kenner, Louisiana (FA8003-20-D-0062); CYE Enterprises Inc.,* Jacksonville, Florida (FA8003-20-D-0063); Swan Contracting, Peterborough, New Hampshire (FA8003-20-D-0064); Roofing Resources Inc.,* Kennett Square, Pennsylvania (FA8003-20-D-0065); Carroll's Roofing and Construction LLC, Arlington, Tennessee (FA8003-20-D-0066); Consolidated Enterprises Inc.,* Anchorage, Alaska (FA8003-20-D-0002); Interior Alaska Roofing Inc.,* Fairbanks, Alaska (FA8003-20-D-0004); EP Roofing,* Anchorage, Alaska (FA8003-20-D-0003); Orion Construction Inc.,* Wasilla, Alaska (FA8003-20-D-0005); Aleut Field Services LLC, Fairbanks, Alaska (FA8003-20-D-0007); and Ames1 DayNight JV, Anchorage, Alaska (FA8003-20-D-0006), have been awarded a not-to-exceed $325,000,000 (all-inclusive/program wide) firm-fixed-price, indefinite-delivery/indefinite-quantity contract to 43 contract holders with 66 contracts for roofing repair, replacement and maintenance. Work will be performed at various Air Force contiguous U.S. installations and installations in Alaska, with work expected to be completed by May 14, 2025. This award is the result of a competitive acquisition and 69 offers were received. Fiscal 2020 operations and maintenance funds in the amount of $66,000 ($1,000 to each contract) are being obligated at the time of award. The 771st Enterprise Sourcing Squadron, Wright-Patterson Air Force Base, Ohio, is the contracting activity. PAE Aviation and Technical Services LLC, Arlington, Virginia, has been awarded a $157,990,274 firm-fixed-price and cost reimbursable contract for performance of the Eglin backshop maintenance services contract. This contract provides for support for repair, maintenance and modification of F-15, F-16, UH1N, C-130 and other required aircraft, including maintaining support equipment and providing crash recovery services. Work will be performed at Eglin Air Force Base, Florida. The period of performance includes a 30-day transition period, a one-year base year with six one-year options and an option to extend services for six months. This award is the result of a full and open competitive acquisition and six offers were received. Fiscal 2020 research, test, development and evaluation funds in the amount of $7,098,853 are being obligated at the time of award. Air Force Test Center, Eglin AFB, Florida, is the contracting activity (FA2486-20-C-0003). Vectrus Systems Corp., Colorado Springs, Colorado, has been awarded a $17,382,577 firm-fixed-price modification (A00072) to contract FA3002-17-C-0001 for base operations support services at Keesler Air Force Base, Mississippi. Work will be performed at Keesler AFB and is expected to be completed May 31, 2021. Fiscal 2020 operations and maintenance funds in the amount of $17,365,577 are being obligated at the time of award. Total cumulative face value of the contract is $78,311,850. The 81st Contracting Squadron, Keesler AFB, Mississippi, is the contracting activity. Raytheon Missiles and Defense, Tucson, Arizona, has been awarded a $17,354,159 firm-fixed-price modification (P00024) to contract FA8675-18-C-0003 for the Advanced Medium Range Air-to-Air Missile program. This modification provides for procurement of two new final assembly test sets and upgrade of two existing final assembly test sets. Work will be performed in Tucson, Arizona, and is expected to be completed by May 31, 2023. This contract involves unclassified Foreign Military Sales (FMS) to Australia, Indonesia, Japan, Poland, Qatar, Spain and Romania. Fiscal 2019 missile procurement (Air Force) funds in the amount of $4,589,102; fiscal 2018 weapons procurement (Navy) funds in the amount of $9,928,382; and FMS funds in the amount of $2,836,675 are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity. NISQA'A TEK LLC, Chantilly, Virginia, has been awarded a $7,608,038 firm-fixed-price contract for information technology services. This contract provides for Cyber Operations for Base Resilient Architectures (COBRA) support. Work will be performed at various locations throughout Pacific Air Force bases and is expected to be completed by May 14, 2021. Fiscal 2020 operations and maintenance funds in the amount of $7,608,038 are being obligated at the time of award. Air Force District of Washington Contracting Office, Joint Base Andrews, Maryland, is the contracting activity (FA7014-20-C-0021). NAVY Alutiiq Logistics and Maintenance Services LLC,* Anchorage, Alaska, is awarded a $196,309,084 indefinite-delivery/indefinite-quantity contract for base operating support services at Naval Air Station China Lake, California. The maximum dollar value including the base period, seven option periods and a six-month option to extend services is $196,309,084. Work will be performed in China Lake, California, and provides for labor, supervision, management and materials (except those specified as government furnished) to perform various base operating support service functions. This includes operations support; supply services; facilities investment; custodial; pest control; refuse and recycling collection; grounds maintenance; street sweeping and snow removal; base support vehicle and equipment rental; and environmental services. Work is expected to be complete by December 2028. No funds will be obligated at time of contract award. Fiscal 2020 operations and maintenance (Navy); fiscal 2020 operations and maintenance (Marine Corps); fiscal 2020 working capital funds (Navy); and fiscal 2020 Defense Health Program contract funds in the amount of $17,237,567 will be obligated for recurring services on an individual task order during the base period. This contract was competitively procured via the Navy Electronic Commerce Online website with four proposals received. Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-20-D-0051). Mare Island Dry Dock LLC, Vallejo, California, is awarded a $33,532,308 firm-fixed-price contract for a 150-calendar day shipyard availability for the regular overhaul and dry-docking of U.S. Ship Emory S. Land (AS 39). Work will be performed in Vallejo, California, and is expected to be complete by January 2021. This contract includes a base period and three options which, if exercised, would bring the cumulative value of this contract to $36,228,717. Working capital funds (Navy) in the amount of $33,532,308 are obligated for fiscal 2020 and 2021, and will not expire at the end of the fiscal year. This contract was competitively procured with proposals solicited via the Government Point of Entry website and two offers received. The Naval Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-18-C-4552). S&K Aerospace LLC,* St. Ignatius, Montana, is awarded a $30,844,497 indefinite-delivery/indefinite-quantity contract for the repair, overhaul and upgrade of 361 commercial common items used on the P-8A Poseidon maritime aircraft. Work will be performed at various contractor supplier locations (85%); and Byron, Georgia (15%). Work is expected to be completed by May 2025. This contract includes a five-year base period with no options. Working capital (Navy) funds will be obligated as individual orders are issued and funds will not expire at the end of the current fiscal year. This contract was competitively procured with the solicitation posted to the Federal Business Opportunities website as an 8(a) small business set-aside requirement, and eight offers were received. The Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-20-D-XE01). The Nutmeg Co. Inc.,* Norwich, Connecticut, is awarded a $27,029,098 firm-fixed-price design-bid-build contract for the repair of Submarine A School Bachelor Quarters Building (BQB) 488, Naval Submarine Base, New London, Connecticut. Work will be performed at New London, Connecticut, and provides for whole building repairs to BQB 488, construction of a new sidewalk on the north side of the building and site grading in the courtyard area to channel water away from the building foundation. Interior repairs include, but are not limited to, an upgrade of existing fire protection; interior finishes; electrical; elevators; heating, ventilation and air conditioning systems; plumbing and provide exterior enclosure repairs. Work is expected to be completed by November 2021. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $27,029,098 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the beta.SAM website with seven proposals received. The Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-20-C-0025). Huntington Ingalls Industries, Pascagoula, Mississippi, is awarded $16,931,540 for a not-to-exceed, undefinitized contract action for long-lead-time material in support of one Amphibious Assault Ship (General Purpose) Replacement (LHA(R)) Flight 1 ship (LHA 9). Work will be performed in Erie, Pennsylvania (47%); Tacoma, Washington (22%), Pascagoula, Mississippi (17%); Sheffield, United Kingdom (12%); and St. Louis, Missouri (2%), and provides the procurement of long-lead-time material for LHA 9, the fourth LHA(R), America class and the second LHA(R) Flight 1 variant. Work is expected to be complete by February 2024. Fiscal 2019 shipbuilding and conversion (Navy) advance procurement funding in the amount of $16,931,540 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with 10 U.S. Code 2304(c)(1) and only one responsible source with no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-20-C-2437). General Dynamics Electric Boat, Groton, Connecticut, is awarded a $16,022,000 undefinitized contract action under previously awarded contract N00024-18-C-2101 to perform Large-Scale Vehicle (LSV) 2 system refurbishment. Work will be performed in Milwaukee, Wisconsin. General Dynamics Electric Boat will obtain vendor services from Leonard DRS Naval Power Systems to support LSV 2 refurbishment. Work is expected to be complete by February 2023. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount $4,000,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding Conversion and Repair, Groton, Connecticut, is the contracting activity. The Boeing Co., Huntington Beach, California, is awarded a $13,229,197 firm-fixed-price modification to previously awarded contract N00024-17-C-4108 to exercise options for hardware procurement for the AN/USQ-82(V) Program in support of DDG-51 class new construction, DDG-51 class modernization and Foreign Military Sales (FMS) cases. This contract combines purchases for the Navy (80%); and the governments of Japan (16%) and Australia (4%) under the FMS program. AN/USQ-82(V) Program is a control system network. Its purpose is to transfer mission critical data to and from users associated with combat, navigation, aviation, power, propulsion, steering, alarms and indicating, and damage control systems. Work will be performed in Smithfield, Pennsylvania, and is expected to be complete by August 2021. Fiscal 2015, 2016, 2017 and 2020 shipbuilding and conversion (Navy); 2020 other procurement (Navy); and FMS Japan and Australia funds in the amount of $13,229,197 will be obligated at the time of the award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Lockheed Martin Rotary and Mission Systems, Liverpool, New York, is awarded a $7,894,505 firm-fixed-price modification to previously awarded contract N00024-14-C-6227 to exercise an option for the procurement of Navy equipment. Work will be performed in Liverpool, New York, and is expected to be complete by October 2021. Fiscal 2020 shipbuilding and conversion (Navy); and 2020 other procurement (Navy) funds in the amount of $7,894,505 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Huang-Gaghan JV Two,* Alexandria, Virginia, is awarded a $7,624,432 firm-fixed-price task order (N40080-20-F-4623) under a multiple award construction contract for the replacement of the heating, ventilation and air conditioning (HVAC) system at Building 1864, Naval Support Activity South Potomac, Naval Support Facility, Indian Head, Maryland. Work will be performed in Indian Head, Maryland, and will demolish the existing HVAC system at Building 1864 and provide a new HVAC system. Building 1864 is a single story laboratory of approximately 20,000 square feet that is used for the testing and evaluation of energetic material. Construction is primarily focused on airside equipment. Replacement equipment and systems includes replacement of three rooftop air handling units and associated distribution ductwork, three central exhaust systems, local exhaust systems, remote variable air volume (VAV) supply terminals with hot water reheat and associated air volume tracking exhaust VAV terminals, steam humidifiers, steam generator for humidification, direct digital controls and other miscellaneous items. A new water treatment plant shall be provided to treat water for building humidification. Support from other construction trades is required to perform the HVAC system replacement. Roof structure and closure shall be modified, fire-rated partitions and penetrations shall be provided and electrical power and grounding shall be provided along with other miscellaneous work. Work is expected to be complete by January 2022. Fiscal 2020 Navy working capital contract funds in the amount of $7,624,432 are obligated on this award and will expire at the end of fiscal year 2022. Four proposals were received for this task order. The Naval Facilities Engineering Command Washington, D.C., is the contracting activity (N40080-19-D-0001). ARMY Palomar Display Products,* Carlsbad, California, was awarded an $89,237,780 firm-fixed-price contract for biocular image control units, assorted spares and engineering services and repairs. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of May 14, 2027. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W909MY-20-D-0006). The Boeing Co., Philadelphia, Pennsylvania, was awarded a $28,000,000 firm-fixed-price contract for advanced procurement of long lead helicopter parts. Bids were solicited via the internet with one received. Work will be performed in Ridley Park, Pennsylvania, with an estimated completion date of June 30, 2022. Fiscal 2020 aircraft procurement (Army) funds in the amount of $28,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-20-F-0380). Greenland Enterprises Inc., Hampton, Virginia, was awarded a $19,635,242 firm-fixed-price contract to repair a hot water line. Bids were solicited via the internet with two received. Work will be performed at Wright-Patterson Air Force Base, Ohio, with an estimated completion date of Jan. 15, 2022. Fiscal 2020 military construction funds in the amount of $19,635,242 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky is the contracting activity (W912QR-20-C-0008). CORRECTION: The contract announced on April 30, 2020, to L3 Technologies Inc., Londonderry, New Hampshire (W56HZV-20-F-0308), for illuminator infrared parts, is actually being awarded today. The award is for $7,450,000, not $17,135,000 as previously announced. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Applied Physical Sciences Corp., Groton, Connecticut, has been awarded an $18,822,358 cost-plus-fixed-fee contract for the base period of a research and development effort for undersea sensing systems. Work will be performed in Groton, Connecticut (60%); Woburn, Massachusetts (20%); Arlington, Virginia (7%); Pawcatuck, Connecticut (4%); Northridge, California (3%); Waltham, Massachusetts (3%); Orange, California (2%); and Concord, Massachusetts (1%), with an estimated completion date of October 2021. Fiscal 2020 research and development funds in the amount of $15,062,029 are being obligated at the time of award. This contract is the result of a competitive acquisition in accordance with original broad agency announcement HR0011-17-S-0034. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR0011-20-C-0100). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2188998/source/GovDelivery/

  • Babcock to build a further 53 Jackal 3s for the British Army

    September 22, 2024 | International, C4ISR, Security

    Babcock to build a further 53 Jackal 3s for the British Army

    September 19, 2024 - Babcock, in partnership with Supacat, has been awarded a contract to build an additional 53 High Mobility Transporter (HMT) Jackal 3s for the British Army. The Jackal...

  • TransDigm to Acquire Esterline Technologies in $4 Billion All Cash Transaction

    October 16, 2018 | International, Aerospace

    TransDigm to Acquire Esterline Technologies in $4 Billion All Cash Transaction

    CLEVELAND, OH and BELLEVUE, WA., October 10, 2018 /PRNewswire/GlobeNewswire -- TransDigm Group Incorporated (NYSE: TDG) and Esterline Technologies Corporation (NYSE:ESL) announced today that they have entered into a definitive agreement under which TransDigm will purchase all of the outstanding shares of common stock of Esterline for $122.50 per share in cash, which represents a premium of 38% to Esterline's closing price on October 9, 2018, or a total transaction value of approximately $4.0 billion including the assumption of debt. The transaction has been approved by the Boards of Directors of both companies. TransDigm expects the acquisition to be financed primarily through cash on hand and the incurrence of new term loans, and currently anticipates the acquisition to be modestly accretive to TransDigm's adjusted earnings per share within the first year of ownership. The acquisition of Esterline expands TransDigm's platform of proprietary and sole source content for the aerospace and defense industries, including significant aftermarket exposure. Headquartered in Bellevue, Washington, Esterline is an industry leader in specialized manufacturing for these sectors with anticipated fiscal year 2018 revenue of approximately $2.0 billion. The company consists of 28 business units organized across eight platforms to deliver specialty aerospace, defense and industrial products. The company employs over 12,500 employees in more than 50 operating locations throughout the world. Esterline has attractive platform positions in both the OEM and aftermarket and has substantial content on many important commercial aircraft variants, many regional and business jet aircraft and major defense platforms. “We are pleased to have reached agreement to acquire a collection of businesses that fit well with our focused and consistent strategy,” stated W. Nicholas Howley, TransDigm's Executive Chairman. “Esterline's core aerospace and defense business consists of primarily proprietary, sole source products with significant and growing aftermarket exposure. We view this as highly complementary to our existing business. We are confident that the combination of Esterline's leading positions and our proven track record of driving performance will enable us to deliver the private equity-like returns our investors have come to expect from this investment." Kevin Stein, TransDigm's President and Chief Executive Officer stated, “We are excited to acquire Esterline's wide range of complementary products and see a path to create significant value for TransDigm shareholders, customers and stakeholders. Upon completion of the transaction, Bob Henderson, TransDigm's current Vice-Chairman, will oversee the integration and operations of Esterline. Mr. Henderson has been a key member of TransDigm's management team for close to 25 years and has overseen the integration of numerous acquisitions during this period, including our recent acquisition of Kirkhill from Esterline.” “Our combination with TransDigm delivers a compelling value for our shareholders,” said Curtis Reusser, Chairman, President and Chief Executive Officer of Esterline. “I am pleased with the outcome of our thoughtful strategic review process, and we believe it is the best result for all Esterline stakeholders. I am very proud of the commitment and focus of our employees to serving the needs of our customers, and I am confident the combined companies will be well positioned to succeed in the global market we serve.” The acquisition will be financed through a combination of existing cash on hand of approximately $2 billion and the incurrence of new term loans. TransDigm has obtained commitments for the full amount of financing required for the transaction. Immediately upon closing, the combined company will maintain the financial flexibility to meet any anticipated operating, acquisition, and other opportunities that may arise though a combination of cash on hand, undrawn revolver, and under certain circumstances, additional availability under its credit agreement. The transaction is subject to customary closing conditions, including Esterline stockholder approval and the receipt of required regulatory approvals. The companies expect to complete the transaction in the second half of calendar 2019. Advisors Morgan Stanley & Co. LLC acted as financial advisor to TransDigm. Wachtell, Lipton, Rosen & Katz and Baker & Hostetler LLP acted as TransDigm's lead legal counsel. Goldman Sachs & Co. LLC acted as financial advisor to Esterline and Evercore Group L.L.C. served as advisor to Esterline's Board of Directors. Skadden, Arps, Slate, Meagher & Flom served as legal counsel to Esterline. Conference Call TransDigm will hold a conference call to discuss this announcement beginning at 10:45 a.m. ET Wednesday, October 10. To join the call, dial (888) 558-9538 and enter the passcode 5278399. International callers should dial (760) 666-3183 and use the same passcode. A slideshow accompanying the presentation will be posted to http://www.transdigm.com prior to the call. A telephone replay will be available for one week by dialing (855) 859-2056 and entering the pass code 5278399. International callers should dial (404) 537-3406 and use the same passcode. About TransDigm Group TransDigm Group Incorporated, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems. About Esterline Esterline Corporation is a leading worldwide supplier to the aerospace and defense industry specializing in three core business segments: Advanced Materials; Avionics & Controls; and Sensors & Systems. Operations within the Advanced Materials segment focus on technologies including high-temperature-resistant materials and components used for a wide range of military and commercial aerospace purposes, and combustible ordinance and electronic warfare countermeasure products. Operations within the Avionics & Controls segment focus on technology interface systems for commercial and military aircraft and similar devices for land- and sea-based military vehicles, integrated cockpit systems, display technologies for avionics, training and simulation markets, secure communications systems, specialized medical equipment, and other high-end industrial applications. The Sensors & Systems segment includes operations that produce high-precision temperature and pressure sensors, specialized harsh-environment connectors, electrical power distribution equipment, and other related systems principally for aerospace and defense customers. Forward-Looking Statements Statements in this press release which are not historic facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations of Esterline's future performance, profitability, growth and earnings; expectations of TransDigm's earnings per share and the financial impact of the proposed transaction; the financing of the proposed transaction; and the timing of the proposed transaction. All statements other than statements of historical fact that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements, including, in particular, statements about our plans, objectives, strategies and prospects regarding, among other things, the acquired business. We have identified some of these forward-looking statements with words like "believe," "may," "will," "should," "expect," "intend," "plan," predict," "anticipate," "estimate" or "continue" and other words and terms of similar meaning. All forward-looking statements involve risks and uncertainties which could affect TransDigm's actual results and could cause its actual results or the benefits of the proposed transaction to differ materially from those expressed in any forward-looking statements made by, or on behalf of TransDigm. These risks and uncertainties include, but are not limited to, closing conditions to the proposed transaction may not be achieved, the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, the effect of the announcement or pendency of the proposed transaction on the TransDigm's and Esterline's business relationships, operating results and business generally, risks related to diverting management's attention from ongoing business operations, the outcome of any legal proceedings that may be instituted related to the Merger Agreement or the proposed transaction, unexpected costs, charges or expenses resulting from the proposed transaction, Esterline's actual financial results for the year ended September 28, 2018 may differ from expected results, TransDigm may have difficulty obtaining required approvals, TransDigm may have difficulty implementing its strategic value drivers, and TransDigm may be impacted by the effects of general economic and industry conditions. Except as required by law, TransDigm undertakes no obligation to revise or update the forward-looking information contained in this press release. Additional Information and Where to Find It This communication is being made in respect of the proposed transaction involving Transdigm and Esterline. In connection with the proposed transaction, Esterline intends to file relevant materials with the Securities and Exchange Commission (the “SEC”), including a preliminary proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, Esterline will mail the definitive proxy statement and a proxy card to each stockholder of Esterline entitled to vote at the stockholder meeting relating to the proposed transaction. This communication is not a substitute for the proxy statement or any other document that Esterline may file with the SEC or send to its stockholders in connection with the proposed transaction. BEFORE MAKING ANY VOTING DECISION, STOCKHOLDERS OF ESTERLINE ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE PROPOSED TRANSACTION THAT ESTERLINE WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ESTERLINE AND THE PROPOSED TRANSACTION. The definitive proxy statement, the preliminary proxy statement and other relevant materials in connection with the proposed transaction (when they become available), and any other documents filed by Esterline with the SEC, may be obtained free of charge at the SEC's website (http://www.sec.gov) or at Esterline's website (http://www.esterline.com/) or by contacting Esterline's Investor Relations at 500 108th Avenue NE, Suite 1500, Bellevue, Washington 98004, or by calling (425) 453-9400. Participants in the Solicitation Esterline and TransDigm and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Esterline's stockholders with respect to the proposed transaction. Information about Esterline's directors and executive officers and their ownership of Esterline's common stock is set forth in its proxy statement for its 2018 Annual Meeting of Stockholders which was filed with the SEC on December 27, 2017, and its Annual Report on Form 10-K for the fiscal year ended September 29, 2017, which was filed with the SEC on November 21, 2017, and the Amendment No. 1 on Form 10-K/A, which was filed with the SEC on March 30, 2018. Information about TransDigm's directors and executive officers is set forth in its proxy statement for its 2018 Annual Meeting of Stockholders and its most recent Annual Report on Form 10-K. These documents may be obtained for free at the SEC's website at www.sec.gov. Additional information regarding the potential participants, and their direct or indirect interests in the proposed transaction, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with SEC in connection with the proposed transaction. Contact: TransDigm Esterline Liza Sabol John Hobbs Director of Investor Relations Sr. Director, Investor Relations (216) 706-2945 (425) 453-9400 ir@transdigm.com https://www.esterline.com/Newsnbsp;PressCenter/EntryId/6232/TransDigm-to-Acquire-Esterline-Technologies-in-4-Billion-All-Cash-Transaction.aspx

All news