Warburg Pincus and Berkshire Partners have agreed to take Triumph Group private in a deal that values the Pennsylvania-based aero parts manufacturer at around $3 billion.
Triumph shareholders will receive $26 per share, a 123% premium to the company’s share price before news of the potential deal went public. The deal is among the largest aerospace and defense PE buyouts in the past decade.
Many of the biggest deals in the sector happened over 2021, when the sector saw 76 buyouts worth a total of $19.3 billion. They included Advent-owned Cobham’s $3 billion-plus acquisition of Ultra Electronics, and Veritas Capital and Elliott Management’s $2.38 billion purchase of defense electronics maker Cubic.
While deal count has steadily decreased, the sector has seen around $5 billion worth of buyout activity each year between 2022 and 2024, when deal activity reached $5.13 billion.
Broader PE investment in the commercial aerospace segment specifically has faired relatively better, with aircraft component manufacturers becoming a key focus.
Warburg Pincus’ other recent investments in the sector include its 2019 acquisition of Allegheny Technologies’ cast products business and its 2018 purchase of aviation repair support provider Silver Wings Aerospace.
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