Apollo Global Management Inc. is buying Barnes Group Inc., a Bristol, Conn.-based industrial technology and aerospace manufacturer with operations that include hot runners and other molding equipment.
The deal announced Oct. 7 is valued at $3.6 billion.
Barnes' business portfolio includes hot runner companies Synventive, Thermoplay, Gammaflux and Manner, cube mold making specialist Foboha and system monitoring supplier Priamus.
Barnes' shareholders will receive $47.50 per share in cash, a 28 percent improvement on the stock's value over the last 90 days.
Barnes Chairman Richard J. Hipple said the agreement delivers "immediate and certain cash value" to shareholders.
"The board and management team carefully reviewed a range of potential opportunities and determined this transaction … maximizes value for our shareholders and is in the best interest of all stakeholders," he said in a news release.
While Barnes' has molding technology that is in demand and a list of customers that includes Boeing Co., Collins Aerospace and Rolls-Royce, the company has been working to "unlock the company's full potential," President and CEO Thomas J. Hook said in the release. A restructuring plan in 2020 cut about 8 percent of its global workforce.
Apollo's funding can provide support to focus for Barnes' future, Hook said.
"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," he said in the release.
Barnes reported 2023 sales of about $1.45 billion dollars. The company's molding systems business accounted for $404 million of that total.