CPI's Electron Device Business manufactures electronic components and subsystems primarily serving the aerospace and defense market. 

CPI's Electron Device Business generated approximately $300 million in revenue for its fiscal year ended September 30, 2023. It has manufacturing locations in Palo Alto, California; Beverly, Massachusetts; Middlesex, UK; and Woodland, California. 

"This business fits well with our long-standing strategy. The vast majority of the Company's revenues come from highly engineered, proprietary products with substantial aftermarket content," said TransDigm's President and CEO Kevin Stein.

The acquisition is expected to close by the end of TransDigm's third fiscal quarter of 2024 and will be financed through existing cash on hand as well as new long-term debt.

TransDigm also announced that its Board of Directors has authorized a special cash dividend of $35.00 on each outstanding share of common stock and cash dividend equivalent payments under options granted under its stock options plans. The record date for the special dividend is November 20, 2023, and the payment date is November 27, 2023.

TransDigm expects fiscal 2024 net sales of $7.48 billion-$7.68 billion (consensus $7.40 billion) and Adjusted EPS of $31.00-$32.94 (consensus $31.15). 

Price Action: TDG shares closed higher by 0.27% at $895.21 on Wednesday.