Triumph Group completes agreement with Spirit AeroSystems to assume production of Gulfstream wing programs

Triumph Group closed the previously announced agreement with Spirit AeroSystems to take over production of the Gulfstream G650 and G280 wing programs located in Tulsa, Oklahoma, effective December 30th, 2014. The business will operate as Triumph Aerostructures-Vought Aircraft Division-Tulsa and will be included in the Aerostructures Group segment. Under the terms of the agreement, Triumph received US$160m in cash plus assets required to run the business from Spirit to cover the anticipated future cash flow needs of the programs, with no additional capital contributions expected by Triumph. The business is expected to add approximately US$250m in annual revenue and to be immediately accretive to earnings per share, reflecting initial estimates of purchase accounting adjustments and excluding synergies resulting from the transaction and transaction related expenses. Triumph will update its fiscal year 2015 guidance to reflect the financial impact of the work transfer when it releases its third quarter fiscal year 2015 earnings in January.