TransDigm

In 2003, Warburg Pincus invested in TransDigm Group (TransDigm), a global designer, producer, and supplier of highly engineered aircraft components for use on nearly all commercial and military aircrafts in service at the time of the firm’s investment. Warburg Pincus believed that TransDigm’s strong competitive position and exceptional management team made it an ideal platform for growth in a fragmented industry ripe for consolidation that was well-positioned to benefit from attractive secular tailwinds in its core aerospace end market. TransDigm’s product offerings at the time of the firm’s investment included ignition systems and components, mechanical/electro-mechanical actuators and controls, power conditioning devices, engineered latches and cockpit security devices, lavatory hardware and components, specialized electric motors, and specialized valving. Warburg Pincus worked closely with management to develop a formal corporate development function at the company. TransDigm shifted personnel and organizational responsibilities to aggressively pursue proprietary add-on acquisition opportunities in a more structured approach and these efforts yielded a rich pipeline of acquisition targets and numerous completed transactions. Throughout the life of the investment, the Warburg Pincus team continued to support TransDigm’s acquisition program, which generated substantial revenue growth from approximately $300 million in 2003 to over $700 million in 2009. In 2006, Warburg Pincus assisted TransDigm with a successful IPO on the New York Stock Exchange. Warburg Pincus exited the investment in 2009.