TransDigm to Buy Esterline for $3.6 Billion Amid Boeing Threat

TransDigm Group Inc. agreed to buy Esterline Technologies Corp. for $3.6 billion plus debt, as the aerospace manufacturer expands its portfolio of high-margin spare parts amid a growing competitive threat from Boeing Co.

The purchase price of $122.50 a share represents a 38 percent premium to Esterline’s closing price Oct. 9. TransDigm said it expects the deal to close in the second half of next year.

Key Insights

• The purchase would be TransDigm’s biggest by several times. The company has grown through smaller acquisitions, targeting makers of highly specialized aircraft parts with few competitors to maintain double-digit growth. Analysts estimated ...