Barnes Group announced Monday that funds managed by Apollo Global Management will acquire the aerospace parts manufacturer in a transaction valued at $3.6 billion. Barnes is being advised by Wachtell Lipton Rosen & Katz, while Apollo is represented by Latham & Watkins LLP and Paul Weiss Rifkind Wharton & Garrison LLP.

Apollo to acquire Barnes: Shareholder Deal Terms

As part of the agreement, Barnes shareholders will receive $47.50 per share in cash, reflecting a 22% premium over the company’s closing share price on June 25. Following the announcement, Barnes' stock climbed 2.5%, reaching $45.26 in pre-market trading on Monday.

Barnes CEO Thomas J. Hook expressed optimism about the acquisition. “Over the past several quarters, Barnes has made tremendous strides to unlock the company's full potential... 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,” Hook said.

Transaction Details and Timeline

The Barnes board unanimously approved the deal, which is set to close in the first quarter of 2025. The completion remains subject to shareholder approval and necessary regulatory clearances. Once finalized, Barnes will be delisted from the New York Stock Exchange, though it will retain its name and brand.

In anticipation of the acquisition, Barnes has suspended its third-quarter conference call and withdrawn its full-year financial guidance for 2024. Goldman Sachs & Co. and Jefferies are acting as the company's financial advisers.

Apollo to acquire Barnes : Apollo’s Strategic Move

This acquisition comes as private equity firms, including Apollo, are actively pursuing deals, driven by large amounts of unspent capital and pressure to exit older investments. Recent shifts in Federal Reserve policy, including a half-point rate cut, have provided further momentum in the mergers and acquisitions market, which saw a robust third quarter.

Apollo, managing approximately $696 billion in assets as of June 30, is optimistic about its investment in Barnes. The firm noted Barnes’ strategic position to capitalize on long-term demand for aerospace components. "We are thrilled to partner with the talented team at Barnes, which has a tremendous heritage... We believe this plan can be accelerated in a private company setting,” said Antoine Munfakh, partner at Apollo.

Legal Advisors

Apollo's legal team is led by M&A partners Justin Hamill, Rick Press, and Michael Anastasio of Latham & Watkins, along with partners Brian Kim, Gregory A. Ezring, and Brian M. Janson from Paul Weiss. Wachtell Lipton Rosen & Katz is advising Barnes, with corporate partners Benjamin M. Roth and Elina Tetelbaum at the helm.