An asset-management company has acquired mold equipment supplier Barnes Group Inc., Bristol, Conn.
Apollo Global Management Inc. made an all-cash transaction that values the Barnes Group at an enterprise value of approximately $3.6 billion. The transaction is expected to close before the end of the first quarter of next year.
Upon completion of the transaction, the Barnes Group will be dropped from the New York Stock Exchange and become a privately held company. It will continue to operate under the Barnes Group name.
The move comes four years after a Barnes Group restructuring the company expected would bring about annualized cost savings $30 million. Around that time, the company was reporting sharp sales drops.
Barnes Group President and CEO Thomas J. Hook said the company has been focused on innovation and investment, looking to improve its financial performance.
“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. We look forward to working with the Apollo team as we continue to execute on our transformation strategy and capture the opportunities this transaction will create for Barnes, our employees, our shareholders, our customers, our suppliers and all stakeholders.”
The Barnes Group develops advanced processes, automation solutions and technologies for a variety of sectors including the aerospace, medical and personal care, mobility and packaging industries. Established 167 years ago, it has been part of the same family for six generations. Its portfolio includes hot-runner brands Synventive, Thermoplay and Männer, as well as mold and control systems brands Gammaflux, Priamus, Foboha and Männer.
“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. We applaud the Barnes team for the progress it has made with its transformation plan, and we believe this plan can be accelerated in a private company setting,” said Antoine Munfakh, an Apollo Funds partner.
