TTM Technologies (Nasdaq: TTMI) has agreed to buy Telephonics from Griffon (NYSE: GFF) in a cash transaction worth approximately $330 million to expand its offerings and capabilities in the aerospace and defense market.
Santa Ana, California-based printed circuit board manufacturer TTM said Monday it expects the transaction to be immediately accretive to non-GAAP earnings per share and to conclude in the second quarter of 2022, pending regulatory approvals and other customary closing conditions.
Founded in 1933, Telephonics provides intelligence, surveillance and communications systems that are fielded across a range of ground, aerial and maritime platforms.
“We expect that the complementary portfolio and skills will enhance TTM’s strategic capabilities and growth opportunities enabling us to deliver significant benefits to our Aerospace and Defense customers,” said TTM CEO Tom Edman.
TTM said the deal will help expand its product portfolio with the addition of radio frequency-based integrated platforms for defense mission areas and enable the company to offer highly engineered products, strengthen its position in radar systems, expand into surveillance and communication markets, further build up its design and development engineering talent and broaden relationships with key defense customers.
TTM will fund the acquisition through existing cash on hand and expects the transaction to realize about $12 million in pre-tax cost synergies by the end of 2024.
J.P. Morgan and O’Melveny & Myers served as financial adviser and legal counsel, respectively, to TTM.
Lazard and Dechert were Griffon’s financial adviser and legal counsel in the transaction.