Triumph Group has announced a significant development in its corporate trajectory. The company has finalized a definitive agreement that will see it transition from a publicly traded entity to private ownership in a deal valued at $3 billion. This acquisition will be executed by affiliates of two private equity firms: Warburg Pincus and Berkshire Partners. These firms are joining forces through a newly created entity specifically for this transaction.
The deal follows Triumph’s announcement in October 2024 that it was exploring strategic options, including a possible sale. Potential suitors at the time were speculated to include TransDigm, Woodward, Parker Hannifin, Curtiss-Wright and Eaton.
Triumph Group, headquartered in Radnor, Pennsylvania, has evolved significantly since its founding in 1993. The company designs, develops, manufactures, repairs, and provides spare parts for a wide range of aerospace and defense systems and components, serving a global clientele that includes original equipment manufacturers (OEMs) and both commercial and military aircraft operators.
In late 2023, Triumph sold its components aftermarket business to AAR for $725 million. This sale reflects Triumph’s strategy to concentrate on its core competency: manufacturing aircraft parts and spares, a higher-growth area than the aftermarket business.
This sale marks another step in Triumph’s restructuring, which began in 2016. Since then, the company has been streamlining operations by consolidating, closing underperforming plants, and divesting non-core assets. Prior divestitures include the 2022 sale of its Stuart, Florida, aerostructures business (specializing in large, complex metallic structures like wing and fuselage assemblies) to Daher Aerospace (terms undisclosed). In 2021, Triumph sold its Texas-based aerospace structures operations to Arlington Capital Partners, who had also acquired Triumph’s composites operations in Milledgeville, Georgia, and Rayong, Thailand, in August 2020. These composites operations provide structural and engine composite fabrications and assemblies for commercial, business jet, and defense platforms, supporting key programs like the Boeing 787, 777, and V-22; Airbus A320, A330, and A350; Embraer E-2; Northrop Grumman Global Hawk; and the Gulfstream G650/700.
This transformation has streamlined the company into a more focused provider of key systems and components, including actuation, engine controls, gearboxes and accessory drive units, mechanical and thermal systems, interiors, and MRO (maintenance, repair, and overhaul) services.
Triumph is currently experiencing renewed growth, with sales forecast for $1.2 billion in the current fiscal year, driven by increasing commercial OEM production rates and robust MRO demand. The company is well-positioned to benefit from the ongoing recovery of the commercial aviation industry, fueled by rising passenger demand and increased aircraft production. While this positive trajectory is expected to continue, Triumph, like many in the industry, is still navigating the lingering effects of pandemic-related supply chain constraints. While these challenges are gradually easing, the pace of improvement has been slower than initially anticipated.
Upon the successful completion of the transaction, Triumph Group will cease to be a publicly traded company. Instead, it will operate as a privately held firm, with its ownership and strategic direction guided jointly by Warburg Pincus and Berkshire Partners. This private ownership structure often allows companies greater flexibility to pursue long-term strategies without the quarterly pressures and scrutiny associated with public markets. It can also facilitate significant investments and restructuring efforts that might be more challenging in the public market environment. The partnership between these two private equity firms suggests a collaborative approach to guiding Triumph Group through its next phase of development.
A military history enthusiast, Richard began at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet grew in importance as a research tool, he helped design the company's Forecast Intelligence Center and currently coordinates the EMarket Alert newsletters for clients. Richard also manages social media efforts, including two new blogs: Defense & Security Monitor, covering defense systems and international issues, and Flight Plan, which focuses on commercial aviation and space systems. For over 30 years, Richard has authored the Defense & Aerospace Companies, Volume I (North America) and Volume II (International) services. The two books provide detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database that tracks all the contractors involved in the programs covered in the FI library. More recently he was appointed Manager, Information Services Group (ISG), a new unit that encompasses developing outbound content for both Forecast International and Military Periscope.
