Private Equity Firms Eye $3 Billion Deal for Triumph Group
Warburg Pincus and Berkshire Partners are reportedly in advanced discussions to acquire Triumph Group Inc., a supplier of aircraft parts and services, for approximately $3 billion, including debt. Sources familiar with the matter indicate that the private equity firms are considering a transaction at $26 per share for Radnor, Pennsylvania-based Triumph.
An announcement could be made as early as Monday, according to insiders. The deal, which remains subject to negotiation and could potentially fall through, has not yet been finalized. Representatives from Triumph and Warburg Pincus have declined to comment, while Berkshire has not yet responded to a request for comment.
Shares of Triumph Group surged by 33% to $24.90 in premarket trading on Monday in New York. Prior to the news, the company's market capitalization stood at around $1.5 billion. Triumph also carries approximately $966 million in debt.
Triumph provides a diverse range of aftermarket components and systems for commercial and military aircraft, including engine parts and integrated systems. Original equipment manufacturers constitute a significant portion of its client base. Last year, the company divested its product support division to AAR Corp. for $725 million to enhance its focus on the aftermarket.
This is not the first time Warburg Pincus and Berkshire have joined forces in the aerospace industry. The two firms previously recapitalized Consolidated Precision Products Corp. in 2019.