Investment firms Warburg Pincus and Berkshire Partners have agreed to buy aircraft parts maker Triumph Group in a take-private deal valued at about $3 billion, the company said on Monday.
An ongoing consolidation in the commercial aerospace industry is expected to be enhanced this year by increasing demand for aerospace parts from large aircraft makers like Boeing and Airbus.
The deal drove competition by both business-focused and investor-backed buyers amid a scarcity of high quality commercial aerospace companies on the market, a person close to the transaction said, leading to a premium of 123% over Triumph’s unaffected closing stock price last fall.
The Radnor, Pennsylvania-based company’s shareholders will receive $26 per share in cash. That represents a premium of 39% over the stock’s closing price on Friday, as competition continued over the weekend.
Triumph has Boeing, Airbus and GE Aerospace among its customers. Triumph services military and commercial aircraft, and has a market capitalization of about $1.45 billion, as of Friday’s close, according to data compiled by LSEG.
Discussions were largely unaffected by a decision by the administration of U.S. President Donald Trump to impose tariffs on China, Mexico, and Canada, the person added.
CONSOLIDATION
Chief Executive Dan Crowley had been preparing Triumph for a sale through divestitures and operational improvements. He joined Triumph in 2016, tasked with restoring investor confidence following the acquisition of Vought Aircraft Industries in 2010.
“Over the last few years, Triumph successfully optimized our portfolio,” Crowley said in a note, adding the company will get an enhanced ability to meet customers’ needs as a privately held company.
Investors anticipating a wave of pro-business policies under the Trump administration are also eager to complete acquisitions.
Boeing’s anticipated recovery over the next few quarters is predicted to drive an increase in demand for airplane parts over the decade.
Last year, private equity firm Arcline Investment Management bought aircraft parts maker Kaman Corp for $1.8 billion, and Platinum Equity agreed to acquire Heroux-Devtek for about $980 million.
Triumph’s shares rose 34% to $25.38 on Monday.
Goldman Sachs is the exclusive financial adviser to Triumph and Lazard advised Berkshire Partners and Warburg Pincus for the deal, which is expected to close in the second half of 2025.
Source: Reuters.com