Barnes Group, Inc. B shares are trading higher after the company inked a deal to be acquired by funds managed by affiliates of Apollo Global Management, Inc. APO in an all-cash transaction valued at around $3.6 billion.
The agreement stipulates that Barnes shareholders will receive $47.50 per share in cash, representing a premium of about 22% over the undisturbed closing share price on June 25, 2024.
Additionally, this price is approximately 28% higher than the volume-weighted average price (VWAP) of Barnes common stock for the 90 days ending June 25, 2024.
The transaction is expected to close by the end of Q1 2025, subject to customary conditions, including shareholder approval and necessary regulatory clearances.
Post closure, Barnes will be delisted from the New York Stock Exchange and operate as a privately held company under the Barnes Group name and brand.
Thomas J. Hook, President and Chief Executive Officer of Barnes, said, “Apollo has a 35-year track record of investing in companies like Barnes that have leading businesses, strong teams and solid performance, and helping to position them for long-term, sustainable growth. Under Apollo Funds ownership, we aim to accelerate our transformation, enhance our capabilities, broaden our product offerings and create new opportunities for growth and innovation.”
Antoine Munfakh, Partner at Apollo stated, “We see opportunities to further invest in and grow Barnes’ businesses, which are positioned to benefit from long-term aerospace demand trends, as well as the need for high performance components and solutions for a range of end-markets.”
Barnes plans to release its third-quarter earnings on October 25, 2024, before the market opens, but due to this pending transaction, it will not hold a conference call or webcast.
Additionally, the company is suspending its financial guidance for the full year 2024.
As of June 30, Apollo’s cash and cash equivalent stood at $2.85 billion.
Price Action: B shares are up 2.62% at $46.45 at the last check Monday.
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