Apollo Funds to take Barnes Group private in $3.6 bln deal
Adds details and background in paragraphs 4-9
Oct 7 (Reuters) -Barnes Group B.N said on Monday that private equity Apollo Funds would acquire the aerospace parts maker in an about $3.6 billion deal, sending its shares up nearly 3% in premarket trade.
As part of the deal, Barnes shareholders will receive $47.50 per share in cash, representing about a 5% premium to the last close. The transaction is expected to close before the end of the first quarter of 2025.
Reuters on Friday reported that Apollo Global Management would acquire the aerospace components manufacturer, citing people familiar with the matter. Apollo's offer represents a near 18.5% premium to Barnes' close on Thursday.
Apollo has been expanding its portfolio with more industrial companies to take advantage of the growing demand in the manufacturing sector.
Last year, the private equity firm struck an $8.1 billion deal to acquire chemical company Univar Solutions and agreed to buy industrial components maker Arconic for about $3 billion.
Apollo said it expected Barnes' businesses to benefit from long-term aerospace trends at a time when travel demand is surging.
Barnes, founded in 1857, makes components for companies across sectors such as packaging, healthcare, aerospace, consumer and electronics.
In the quarter ended June 30, the company reported a net loss of $46.8 million and revenue growth of 12% to $382.2 million, which fell short of analysts' expectations.
The company has around 5,700 employees and operates 43 manufacturing locations, according to its website.
Barnes has also been under pressure from activist investor Irenic Capital, which acquired a stake in the company in 2022, and has pushed it to shake up its board and explore a strategic review.
Reporting by Nathan Gomes in Bengaluru; Editing by Vijay Kishore
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