Warburg Pincus and Berkshire Partners to acquire Triumph Group in $3bn take-private deal

Warburg Pincus and Berkshire Partners have agreed to acquire Triumph Group, a leading supplier of aircraft parts and services, in a deal valued at approximately $3bn, including debt.

The private equity firms will pay $26 per share in cash, representing a 39% premium over Triumph’s closing price on Friday.

Triumph shares surged as much as 37% in US premarket trading following the announcement. The Radnor, Pennsylvania-based company, which had a market capitalization of around $1.5bn before the deal, also carries approximately $966m in debt. The transaction is expected to close in the second half of the year, pending regulatory and shareholder approval.

Triumph provides a range of aftermarket products for commercial and military aircraft, supplying major original equipment manufacturers. In 2023, the company sold its product support division to AAR Corp. for $725m as part of a strategic move to focus on the aftermarket sector.

Warburg Pincus and Berkshire Partners have prior experience in aerospace investments, having recapitalized Consolidated Precision Products in 2019. For this deal, Goldman Sachs served as Triumph’s financial adviser, while Lazard advised Warburg Pincus and Berkshire Partners.

Source: Bloomberg

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