Private equity firm Apollo Funds is to acquire aerospace components manufacturer Barnes Group in a take-private deal valued at approximately $3.6bn, with the company’s shares gaining by nearly 3% in premarket trading on the news, according to a report by Reuters.
Under the terms of the agreement, Barnes shareholders will receive $47.50 per share in cash, representing a 5% premium over the company’s last closing price, with the transaction expected to be finalised before the end of the first quarter of 2025.
The agreement comes after Reuters reported on Friday that Apollo Global Management was in advanced talks to acquire Barnes, citing sources familiar with the matter. Apollo’s offer represents an 18.5% premium to Barnes’ share price as of last Thursday’s close.
Apollo has been steadily expanding its industrial portfolio to capitalise on rising demand in the manufacturing sector. Last year, the firm struck an $8.1bn deal to acquire chemical company Univar Solutions and agreed to buy industrial components manufacturer Arconic for approximately $3bn.
The private equity giant believes Barnes’ operations will benefit from long-term aerospace trends, as travel demand continues to surge. Barnes, founded in 1857, manufactures components for various sectors, including packaging, healthcare, consumer products, electronics, and aerospace.
In its most recent quarterly report ending 30 June, Barnes posted a net loss of $46.8m despite a 12% increase in revenue to $382.2m, which fell short of analysts’ expectations. The company currently employs around 5,700 people and operates 43 manufacturing facilities worldwide, according to its website.
