On 18th April 2022, TTM Technologies announced that they have agreed to acquire Telephonics Corporation (“Telephonics”) for approximately $330 million in cash from Griffon Corporation. Telephonics, founded in 1933, is recognized globally as a leading provider of highly sophisticated intelligence, surveillance and communications solutions that are deployed across a wide range of land, sea and air applications.
The transaction will significantly broaden TTM’s Aerospace and Defense product offering vertically into higher-level engineered system solutions and horizontally into surveillance and communications markets while strengthening its position in radar systems. With the addition of critical engineering talent, the combined company is expected to be strongly positioned to benefit from the anticipated increased spending towards defense electronics.
“I am excited for Telephonics to join TTM as we continue on our journey to move up the value chain and provide more engineered products to our offering for our customers,” said Tom Edman, CEO of TTM. “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. We also expect the transaction to be immediately accretive to our non-GAAP EPS.”
“This is a compelling strategic combination that we expect will meaningfully enhance our product offering to our Aerospace and Defense customers with engineered system level solutions,” said Cathie Gridley, President of TTM’s Aerospace and Defense Business Unit. “This acquisition positions TTM with full vertical integration capability from printed circuit board to highly sophisticated OEM solutions to better meet our Aerospace and Defense customer needs.”
The acquisition of Telephonics is expected to provide a number of benefits to TTM:
- Builds upon TTM’s previous acquisition of Anaren with the addition of RF-based integrated systems for key defense mission areas
- Continues TTM’s journey to move up the value chain and become a larger provider of custom designed solutions and highly-engineered products
- Deepens TTM’s relationships with critical defense customers and is projected to grow A&D to approximately 40% of total company revenues, or approximately $1 billion
- Provides growth in international A&D customers
- More than doubles TTM’s A&D design and development engineering talent with the addition of deep systems engineering expertise in RF/Microwave-based integrated systems
- Expected to be immediately accretive to non-GAAP EPS, providing a unique opportunity to create significant value for customers and shareholders, and provide greater opportunities for employees.
Click here to learn more about Telephonics.