TransDigm closes $1.066 billion Prince & Izant deal, now 2.7 times sales after a revenue upgrade
The Cleveland brazing-alloy maker is now expected to bring in $390 million this year, up from $360 million when the deal was signed in July, so TransDigm paid the same cash for more sales. It used cash on hand, and priced $3 billion of new secured notes the same day.
TransDigm Group said on Monday that it has completed its purchase of Prince & Izant, a Cleveland maker of brazing alloys and specialty metal parts, for about $1.066 billion in cash including certain tax benefits, according to the company's release. The seller was private equity firm Industrial Growth Partners, and TransDigm paid for it entirely from cash on hand. TransDigm shares were up 0.27% at $1,112.16 shortly before 10 a.m. Tuesday, according to Nasdaq data.
Same price, more revenue
The headline price did not move between signing and closing. The forecast did. When TransDigm announced the agreement on July 27, it said Prince & Izant was expected to generate about $360 million of revenue in calendar 2026. The closing release puts that at about $390 million.
That changes the math. At $360 million, $1.066 billion was about 3.0 times expected sales. At $390 million it is about 2.7 times. TransDigm did not disclose Prince & Izant's EBITDA in either release, so an earnings multiple cannot be calculated from what the company published.
Neither release says why the forecast rose. Both say that most of Prince & Izant's revenue comes from specialty metals, including gold, silver and platinum alloys. With about 220 employees, $390 million of revenue works out to roughly $1.8 million per worker, which suggests a large share of the sales line is the value of the metal itself. That matters for anyone comparing this multiple with TransDigm's other purchases: a dollar of precious-metal revenue is not the same as a dollar of machined-part revenue.
What it makes, and who buys it
Brazing alloys join metal parts at high heat. TransDigm says Prince & Izant's products go into aircraft engine fuel nozzles and rocket engines, plus aeroderivative turbines, transportation, and to a smaller degree medical and industrial uses. It carries nearly 10,000 active products across plants in Ohio, Illinois, Wisconsin and New York. The company says the majority of revenue is aftermarket, which is the replacement and repair business TransDigm prizes. In TransDigm's own fiscal third quarter, commercial and non-aerospace aftermarket was $908 million of $2,741 million in net sales, about a third.
How it compares with recent deals
- Jet Parts Engineering and Victor Sierra Aviation, closed April 7, 2026: about $2.2 billion.
- Prince & Izant, closed September 28, 2026: about $1.066 billion.
- Simmonds Precision Products, closed October 6, 2025: about $757 million.
- Extant Aerospace asset purchase, agreed September 21, 2026: about $240 million, not yet closed.
- Servotronics, closed July 2025: about $133 million.
TransDigm also walked away in July from a $960 million agreement to buy Stellant Systems, per its latest 10-Q.
The balance sheet behind "cash on hand"
At June 27, TransDigm held $2,773 million of cash and had $864 million available on its revolver. Prince & Izant's price equals about 38% of that cash balance. Total debt stood at $33,485 million, and net interest expense for the quarter was $514 million, up 29.5% from a year earlier, at a weighted average cash rate of 6.2%. In the nine months through June, the company also spent $1,807 million buying back its own stock at an average of $1,207.50 a share, above where it trades now.
The same day the deal closed, TransDigm sold $3 billion of 6.75% senior secured notes due 2035. Most of the money is meant to buy back $2.1 billion of 6.75% notes due 2028 through a tender offer launched September 14. The rest goes to general corporate purposes, which leaves room to refill the cash spent on Prince & Izant. The coupon is the same, and the new notes push that debt out to 2035.
The stock sits near the bottom of its 52-week range of $1,071.25 to $1,463.02, with a market value of about $61.5 billion, per Nasdaq.
Related: more stock news.
Sources: TransDigm closing release, TransDigm agreement release, notes 8-K, Q3 fiscal 2026 10-Q, SEC EDGAR filings, Nasdaq market data. Sales multiples, revenue per employee and the cash share are Chronicle calculations from those figures. This is market information, not investment advice.
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