TransDigm [NYSE:TDG] is expected to be among the strategics to strongly pursue Triumph Group [NYSE:TGI] as Triumph is exploring options, including a sale, said three sector advisors.

Bloomberg reported last week that the Radnor, Pennsylvania-based aircraft components maker was working with a financial advisor and is considering its options, including selling the company. This news service first flagged Triumph Group as an acquisition target in January.

While there’s at least a few strategics expected to look at Triumph, the three sector advisors said Cleveland-based TransDigm has long been the one considered to be the front runner to acquire Triumph Group if it was ever for sale. Two of the sector advisors noted Triumph’s current portfolio with actuation products and systems electronics involved with aerospace is a natural fit with TransDigm’s current product line, which consists of aircraft products. These sector advisors added Triumph is more of a product manufacturing company now, which TransDigm would find more appealing.

Two of the sector advisors are aware that TransDigm had wanted to acquire Triumph Group in the past but Triumph had the aerospace structures and product support businesses which TransDigm wasn’t interested in. They added that with those businesses sold, Triumph is much more attractive to TransDigm.

TransDigm continues to be acquisitive. In July, the company completed its USD 655m acquisition of aerospace and defense testing and measurement equipment company Raptor Scientific. This news service reported in June that Raptor Scientific sold to TransDigm for a high teens EBITDA multiple. In June, TransDigm also completed its buy of the electron device business of TJC portfolio company Communications & Power Industries for close to USD 1.4bn. TransDigm also announced the acquisition of aerial firefighting products company SEI Industries for USD 170m in May using cash on hand. The company has close to USD 3.4bn in cash and cash equivalents on its balance sheet, according to its latest 10-Q filing.

On its 3Q24 earnings call in August, TransDigm CEO Kevin Stein said the company continues to actively look for M&A opportunities that fit its model, adding that it continues to see an expanding pipeline of potential M&A targets.

Other strategics that could show interest in Triumph Group include control systems maker Woodward [NASDAQ:WWD], motion and control technology company Parker Hannifin [NYSE:PH], aircraft controls and actuators maker Curtiss-Wright [NYSE:CW], industrials company Eaton [NYSE:ETN], the three sector advisors said. Large sponsors are also expected to show interest, the third sector advisor said. This sector advisor said they would take a hard look at the company.

In March, aviation services company AAR [NYSE:AIR] completed its acquisition of Triumph’s product support business, which provides specialized maintenance, repair, and overhaul capabilities for critical aircraft components, for USD 725m.

In the press release announcing the deal last December, Triumph said upon completion of the transaction, Triumph will advance in aerospace and its adjacent markets as a value-added and intellectual property-based business consisting of four pure-play engineered systems components and aftermarket companies focused on actuation products and services, systems electronics and controls, geared solutions, and interiors. Goldman Sachs acted as financial advisor to Triumph on the transaction.

In 2022, Triumph sold its Stuart aerostructures business to Daher Aerospace for an undisclosed amount. The year prior, the company divested its Texas-based aerospace structures operations to Arlington Capital Partners. Arlington also acquired Triumph’s composites operations in Milledgeville, Georgia and Rayong, Thailand in an August 2020 deal.

Triumph Group has a USD 1.16bn market capitalization. It had slightly more than USD 950m in long-term debt as of June 30, nearly all of which is related to senior secured notes due in 2028, according to its latest 10-Q.

Triumph Group and TransDigm did not return requests for comment.