Q: Will we still have a 401(k) plan under TransDigm?
A: It is too early to be able to give a definitive answer to this question. Once TransDigm informs us of their plans, we will make them known.
Stock: General Question
Q: What will happen if employees don’t sell their current Esterline shares before closing?
A: On the closing date all shares of Esterline stock will automatically be converted into the right to receive $122.50 per share per the merger agreement. If you hold your shares through a brokerage account, you will receive instructions through your broker, or if you hold your shares in registered form (i.e. hold stock certificates or book-entry shares) you will receive a letter of transmittal directly from our transfer agent, Computershare. Most employees likely hold their shares (including those purchased through employee stock purchase programs) in a brokerage account. You should watch for and follow the instructions from your broker or as indicated in the letter of transmittal, as the case may be, to be paid for your shares.
Q: Do employees need to exercise options prior to close or will it happen naturally?
A: Employees do NOT need to exercise options prior to the close. At the time of closing, all vested AND unvested stock options, will be automatically converted into the right to receive $122.50 per share less theper-share exercise price of the option and any required withholding tax.
TransDigm
Q: On the basis that the TransDigm business is compatible with Esterline, is there a likelihood they will close certain Esterline businesses to take us out of the market to grow their business internally?
A: Understand we are still early in the process and no strategic decisions have yet been made about particular businesses or products. TransDigm has stated that Esterline represents a collection of businesses that fits well with their strategy and they paid for the value our businesses could add to their strategy. If more information becomes available on this topic, we will communicate it to you as applicable.
Q: How many locations does TransDigm have? Where are their locations? Where is their headquarters?
A: TransDigm is headquartered in Cleveland, Ohio, USA. They have 34 operating units in more than 40 locations around the globe, in many of the same areas as Esterline businesses, including Belgium, China, France, Germany, Mexico, Singapore, the U.K. and the U.S. They also have locations in Hungary, Malaysia, Norway, Sri Lanka and Sweden. For the mostup-to-date information about TransDigm, visit their website atwww.transdigm.com.
Q: Is the TransDigm approach similar or different to how Esterline currently manages the business, if so how will it be different?
A: Currently, TransDigm deploys a decentralized operating strategy with each business unit retaining individual branding and operating control within the framework of TransDigm’s strategic priorities. It is too early to know how TransDigm would plan to operate the Esterline businesses as a part of TransDigm, but more information on the integration strategy will be shared once it is available.
Q: Does TransDigm have the same products as us?
A: According to the TransDigm website, TransDigm specializes in “highly engineered aerospace components, systems and subsystems for use on nearly all commercial and military aircraft in service today,” which is quite similar to Esterline’s broad product description. More specifically, TransDigm
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