The Carlyle Group has entered into a definitive agreement to sell Vought Aircraft Industries to Triumph Group (NYSE: TGI) for $984 million in cash and stock. Including existing Vought debt, the deal is valued at $1.44 billion. Carlyle will receive $525 million in cash and approximately 7.5 million Triumph shares through the sale, giving it about a 31% stake in Triumph post-closing. Carlyle has owned the aircraft structure manufacturer since 2000, when it acquired it for $843 million from Northrup Grumman.
With the end of the first quarter nearing, an early count of 60 completed exits shows deal flow for exits remains steady from Q4 but has yet to return to 2008 and 2007 levels. Corporate acquisitions remain steady with 32 deals, but IPOs have fallen off a bit with only 7, while secondary transactions have picked up with 20 completed so far. The rise in secondary acquisitions could be a bullish signal for exits as they accounted for a significant amount of exits in recent years and signal a growing confidence in valuations.