Warburg Pincus and Berkshire Partners have agreed to take aircraft parts and services supplier Triumph Group Inc. private for approximately $3 billion, including debt. The buyout firms offered to pay $26 per share in cash, representing a premium of around 39% to the closing price on Friday.
As a result, Triumph Group shares surged as much as 37% to $25.61 in US premarket trading on Monday. The company’s market value was about $1.5 billion on Friday and has around $966 million in debt.
Triumph Group provides aftermarket products for commercial and military aircraft, including engine parts and integrated systems. It has previously sold its product support arm to rival AAR Corp. for $725 million in a bid to become a more agile aftermarket player.
This deal marks the second aerospace-related partnership between Warburg Pincus and Berkshire Partners. In 2019, they recapitalized Consolidated Precision Products Corp. This time, Goldman Sachs Group Inc. is advising Triumph, while Lazard Inc. served as financial adviser to Berkshire Partners and Warburg Pincus.
Source: https://finance.yahoo.com/news/warburg-berkshire-partners-agree-3-101823506.html