Warburg, Berkshire Partners Approve $3 Billion Deal For Triumph

Private equity firms Warburg Pincus and Berkshire Partners have agreed to take aircraft parts and services supplier Triumph Group Inc. private in a deal worth approximately $3 billion, including debt, David Carnevali and Ryan Gould reported for Bloomberg News.

This isn’t the first time Warburg Pincus and Berkshire Partners have collaborated on an aerospace-related deal. I Photo: Warburg Pincus

The buyout firms offered to pay $26 per share in cash for the Radnor, Pennsylvania-based company, according to a statement confirming an earlier Bloomberg News report.

The offer represents a premium of roughly 39% over Friday's closing price. The transaction is expected to close in the second half of this year, pending regulatory and shareholder approval.

This isn’t the first time Warburg Pincus and Berkshire Partners have collaborated on an aerospace-related deal. In 2019, they recapitalized Consolidated Precision Products Corp., according to a statement at the time.

Triumph Group shares surged as much as 37% to $25.61 in U.S. premarket trading this week.

The company’s market value stood at approximately $1.5 billion on Friday, with about $966 million in debt, according to data compiled by Bloomberg. The news outlet reported in October that Triumph was considering a sale.

Triumph supplies a range of aftermarket products for commercial and military aircraft, including engine parts and integrated systems.

Original equipment manufacturers are among its largest clients. Last year, the company sold its product support division to rival AAR Corp. for $725 million as part of a strategy to become a more streamlined aftermarket player.