Houlihan Lokey Advises Skandia

Houlihan Lokey is pleased to announce the sale of Skandia, a portfolio company of Graycliff Partners, to TransDigm Group for a total enterprise value of $84 million. Houlihan Lokey served as the exclusive financial advisor to Skandia. The transaction closed on July 13, 2018.

Skandia, headquartered in Davis Junction, Illinois, is a leading provider of highly engineered seating foam, foam fabrication, flammability testing, and acoustic solutions for the business jet market. Nearly 85% of revenues are derived from the business jet market with the remainder from commercial aerospace applications. The company’s products are primarily proprietary and sole-source, with over 50% of revenues derived from aftermarket content. Skandia is on all major business jet platforms, including those of Bombardier, Cessna, Dassault, Embraer, and Gulfstream.

Graycliff Partners is an investment firm focused on lower-middle-market investments. Graycliff seeks to partner with companies led by strong, entrepreneurial management teams, providing capital for acquisitions, management buyouts, recapitalizations, growth, and expansion.

TransDigm is a leading global designer, producer, and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, high-performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems.

Houlihan Lokey's Aerospace•Defense•Government (ADG) practice is the leading M&A advisor to aerospace, defense, government services, and homeland security companies. Since 2015, we have closed more than 60 transactions worth nearly $15 billion in enterprise value. With a staff of approximately 30 investment bankers in Washington, D.C., London, and Los Angeles, Houlihan Lokey's ADG practice is among the largest dedicated industry banking groups worldwide.