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Highlights:
- Acquisition Terms: Barnes Group will be acquired by Apollo Global Management for $3.6 billion in cash, with shareholders receiving $47.50 per share, representing a 22% premium.
- Strategic Transformation: Under Apollo’s ownership, Barnes plans to accelerate its transformation, enhance capabilities, broaden product offerings, and drive growth and innovation.
- Completion Timeline: The transaction is expected to close by the first quarter of 2025, pending regulatory approvals.
Barnes Group, a leading technology and aerospace manufacturer, announced that it has agreed to be acquired by Apollo Global Management for $3.6 billion in cash. The acquisition, which will see Barnes shareholders receive $47.50 per share, represents a 22% premium over the company's closing share price on June 25. Both companies expect the deal to be finalized by the first quarter of 2025.
Key Deal Terms and Strategic Focus
Barnes Group shareholders are set to receive $47.50 per share in cash as part of the agreement with Apollo Global Management, a premium of around 22% based on the company’s stock price before the announcement. Richard J. Hipple, chairman of the board of directors at Barnes Group, emphasized that the board had considered a variety of opportunities before selecting Apollo’s offer, which he believes maximizes value for shareholders and aligns with the long-term interests of all stakeholders.
Thomas J. Hook, president and CEO of Barnes Group, echoed this sentiment, highlighting Apollo’s extensive 35-year history of successful investments in companies like Barnes. He noted that Apollo’s ownership would position Barnes to accelerate its transformation, enhance capabilities, and create further opportunities for growth and innovation. Hook anticipates a collaborative partnership with Apollo, aimed at driving the company's transformation strategy forward, benefiting employees, shareholders, customers, and other stakeholders.
Growth and Innovation under Apollo’s Ownership
Apollo Global Management, with its vast experience in acquiring and transforming businesses across various industries, will support Barnes in accelerating its strategic transformation. By focusing on enhancing the company's capabilities, broadening product offerings, and creating new growth opportunities, Apollo aims to position Barnes for long-term, sustainable success. Barnes, known for its strong aerospace and industrial manufacturing businesses, is expected to leverage this partnership to strengthen its market position and explore further innovations in its sector.
The acquisition aligns with Apollo’s strategy of investing in companies with strong potential for long-term growth, and Barnes' established performance and industry leadership fit well into that framework. The deal is expected to close before the end of the first quarter of 2025, subject to customary regulatory approvals and closing conditions.
