Apollo Funds Acquires Barnes Group: New Upswing for the Aviation Industry

The renowned private equity firm Apollo Funds has announced its plan to acquire the aerospace components manufacturer Barnes Group for approximately $3.6 billion. This news caused Barnes' stock to rise by almost 3% in pre-market trading. As part of the transaction, Barnes shareholders will receive $47.50 per share in cash, which represents a premium of about 5% over the last closing price. The deal is expected to close before the end of the first quarter of 2025. Previously, Reuters reported that Apollo Global Management would take over the aircraft parts manufacturer, with Apollo's offer price representing a premium of almost 18.5% over Barnes' closing price on Thursday. Apollo's move to expand its portfolio through the acquisition of additional industrial companies comes amid growing demand in the manufacturing sector. Last year, Apollo completed an $8.1 billion deal to acquire the chemical company Univar Solutions and agreed to purchase the industrial components manufacturer Arconic for around $3 billion. Apollo also sees in Barnes a long-term benefit due to the positive trends in the aviation industry, especially as demand in the travel sector is currently increasing sharply. Founded in 1857, Barnes supplies various industries such as packaging, healthcare, aerospace, as well as consumer and electronic products with its components. In the second quarter of this year, Barnes reported a net loss of $46.8 million on a revenue growth of 12% to $382.2 million, which fell short of analysts' expectations. The company employs approximately 5,700 people and operates 43 manufacturing sites. Additionally, Barnes is under pressure from activist investor Irenic Capital, which has held shares in Barnes since 2022 and is pushing for a board restructuring and a strategic review.