CLEVELAND (AP) -- Aircraft parts supplier TransDigm Group Inc. said Monday that it has agreed to buy McKechnie Aerospace Holdings Inc. for about $1.27 billion in cash.
Cleveland-based TransDigm said it will finance the deal through a combination of senior and subordinated debt.
McKechnie, a privately held aerospace company, is expected to have more than $300 million in revenue this year, TransDigm said in a statement.
McKechnie, with 1,500 employees, gets two-thirds of its revenue from commercial aircraft makers and aftermarket parts sales, the statement said.
Its two biggest units, Hartwell of Los Angeles and Electromech/Welco of Wichita, Kan., make external latches and motors, blowers and valves for the aircraft industry. Their products are used on Boeing and Airbus aircraft as well as regional and business turbine planes.
McKechnie also has business units based in Seattle; Sylmar, Calif., Belgium and the United Kingdom.
"We have obtained commitments for the full amount of financing to execute this transaction," TransDigm's statement said, adding that the deal will bring its total debt to about $3 billion.
The company expects to pay down the debt relatively quickly, saying in a statement that after the deal is done, it will have more than $400 million in cash and available revolving credit and it can generate cash in excess of its operating and debt service needs.
The deal is expected to close before the end of the calendar year, the company said.
Shares of TransDigm slipped 15 cents to $62.09 in midday trading after rising earlier to a 52-week high of $64.67.
