BERWYN, Pa., Aug. 4, 2020 /PRNewswire/ -- Triumph Group, Inc. (NYSE: TGI) ("Triumph" or the "Company") today announced it has reached a definitive agreement to sell its G650 program scope of work including supply chain management, engineering services, and related tooling, inventory, facilities, personnel, and warranty obligations to Gulfstream Aerospace. This agreement follows the Company's transfer of the G650 wing assembly line in Tulsa, Oklahoma to Gulfstream's Savannah, Georgia facility in 2019.
The G650 wing program was transferred from Spirit Aerosystems to Triumph Group in 2015. Following Triumph's strategic decision to exit non-core structures manufacturing, the G650 wing production lines in Nashville, Tennessee and Tulsa, Oklahoma were transferred to Gulfstream in sequence without interruption to Gulfstream's internal G650 production line. This agreement also provides price adjustments for critical G600 composite parts retained by Triumph Aerospace Structures Red Oak Texas plant.
"Triumph continues to optimize its program and operating company portfolio in partnership with our OEM customers and strategic partners to reach our future state focused on defense programs, critical systems components and aftermarket services," said Daniel Crowley, Triumph Group President and Chief Executive Officer. "We are proud to have supported Gulfstream on the G650 since 2015 and look forward to supplying critical composite parts more suited to our long-term strategy."
The transaction is subject to customary closing conditions and should be complete in the next few weeks. Financial terms were not disclosed.
Lazard is acting as an exclusive financial advisor to Triumph on the transaction.
Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators. More information about Triumph can be found on the Company's website at www.triumphgroup.com.
Forward Looking Statements
Statements in this release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations of or assumptions about our financial results for fiscal year 2020, and our ability to achieve cost savings and the benefits of our operational efficiency initiatives. All forward-looking statements involve risks and uncertainties which could affect the Company's actual results and could cause its actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. Further information regarding the important factors that could cause actual results to differ from projected results can be found in Triumph Group's reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2020. The Company undertakes no obligation to update any such forward-looking statement.
Widespread health developments, including the recent global coronavirus (COVID-19), and the responses thereto (such as voluntary and in some cases, mandatory quarantines as well as shut downs and other restrictions on travel and commercial, social and other activities) could adversely and materially affect, among other things, the economic and financial markets and labor resources of the countries in which we operate, our manufacturing and supply chain operations, commercial operations and sales force, administrative personnel, third-party service providers, business partners and customers and the demand for our products, which could result in a material adverse effect on our business, financial conditions and results of operations.