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Barnes Group to Be Acquired by Apollo Funds for $3.6 Billion

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Barnes Group Inc. (NYSE: B) has announced an agreement to be acquired by funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) in an all-cash transaction valued at approximately $3.6 billion. Barnes shareholders will receive $47.50 per share in cash, representing a premium of about 22% over Barnes' undisturbed closing share price on June 25, 2024.

The transaction, expected to close before the end of Q1 2025, is subject to approval by Barnes shareholders and regulatory approvals. Upon completion, Barnes will become a privately held company but continue to operate under the Barnes Group name and brand. The Barnes Board of Directors unanimously approved the agreement and recommends shareholders vote in favor.

As a result of this pending transaction, Barnes has suspended its financial guidance for the full year 2024 and will not conduct its third quarter 2024 conference call and webcast.

Barnes Group Inc. (NYSE: B) ha annunciato un accordo per essere acquisita da fondi gestiti da affiliate di Apollo Global Management, Inc. (NYSE: APO) in un'operazione interamente in contante del valore di circa 3,6 miliardi di dollari. Gli azionisti di Barnes riceveranno $47,50 per azione in contante, rappresentando un premio di circa il 22% rispetto al prezzo di chiusura non disturbato delle azioni di Barnes del 25 giugno 2024.

L'operazione, prevista per chiudersi entro la fine del primo trimestre del 2025, è soggetta all'approvazione degli azionisti di Barnes e alle approvazioni normative. Una volta completata, Barnes diventerà una società privata, ma continuerà a operare sotto il nome e il marchio Barnes Group. Il Consiglio di Amministrazione di Barnes ha approvato all'unanimità l'accordo e raccomanda agli azionisti di votare a favore.

In conseguenza di questa operazione in sospeso, Barnes ha sospeso le sue previsioni finanziarie per l'intero anno 2024 e non condurrà la sua videochiamata e diretta web per il terzo trimestre del 2024.

Barnes Group Inc. (NYSE: B) ha anunciado un acuerdo para ser adquirida por fondos gestionados por afiliados de Apollo Global Management, Inc. (NYSE: APO) en una transacción totalmente en efectivo valorada en aproximadamente 3.6 mil millones de dólares. Los accionistas de Barnes recibirán $47.50 por acción en efectivo, lo que representa una prima de aproximadamente el 22% sobre el precio de cierre no alterado de las acciones de Barnes del 25 de junio de 2024.

Se espera que la transacción se cierre antes de fin del primer trimestre de 2025 y está sujeta a la aprobación de los accionistas de Barnes y las aprobaciones regulatorias. Una vez completada, Barnes se convertirá en una empresa de propiedad privada, pero continuará operando bajo el nombre y la marca de Barnes Group. La Junta Directiva de Barnes aprobó unánimemente el acuerdo y recomienda a los accionistas que voten a favor.

Como resultado de esta transacción pendiente, Barnes ha suspendido su guía financiera para todo el año 2024 y no llevará a cabo su conferencia telefónica y webcast del tercer trimestre de 2024.

바넷 그룹(Barnes Group Inc.) (NYSE: B)아폴로 글로벌 매니지먼트(Apollo Global Management, Inc.) (NYSE: APO)의 계열사가 관리하는 자금에 의해 인수되기로 합의했다고 발표했습니다. 이번 거래는 현금 전체 지급 방식으로 약 36억 달러의 가치가 있습니다. 바넷 주주들은 주당 $47.50의 현금을 받게 되며, 이는 2024년 6월 25일 바넷의 변동 없는 종가 대비 약 22%의 프리미엄을 나타냅니다.

이번 거래는 2025년 1분기 말 전에 종료될 것으로 예상되며, 바넷 주주와 규제 당국의 승인이 필요합니다. 거래가 완료되면 바넷은 사기업이 되지만 바넷 그룹의 이름과 브랜드 하에 계속 운영됩니다. 바넷 이사회는 이 협정을 만장일치로 승인하였으며, 주주들에게 찬성 투표를 권장하고 있습니다.

이번 미결 거래로 인해 바넷은 2024년 전체 연도에 대한 재정 지침을 중단하였고 2024년 3분기 컨퍼런스 콜과 웹캐스트를 실시하지 않을 것입니다.

Barnes Group Inc. (NYSE: B) a annoncé un accord pour être acquis par des fonds gérés par des affiliés de Apollo Global Management, Inc. (NYSE: APO) dans le cadre d'une transaction entièrement en espèces d'une valeur d'environ 3,6 milliards de dollars. Les actionnaires de Barnes recevront 47,50 $ par action en espèces, représentant une prime d'environ 22 % par rapport au prix de clôture non perturbé des actions de Barnes au 25 juin 2024.

La transaction, qui devrait être finalisée avant la fin du premier trimestre 2025, est soumise à l'approbation des actionnaires de Barnes et aux approbations réglementaires. Une fois la transaction terminée, Barnes deviendra une entreprise privée, mais continuera à fonctionner sous le nom et la marque Barnes Group. Le conseil d'administration de Barnes a approuvé à l'unanimité l'accord et recommande aux actionnaires de voter en faveur.

En raison de cette transaction en attente, Barnes a suspendu ses prévisions financières pour l'ensemble de l'année 2024 et ne réalisera pas son appel conférence et son webinaire du troisième trimestre 2024.

Barnes Group Inc. (NYSE: B) hat eine Vereinbarung zur Übernahme durch von Apollo Global Management, Inc. (NYSE: APO) verwaltete Fonds bekannt gegeben. Die Transaktion, die in bar erfolgt, wird auf etwa 3,6 Milliarden Dollar geschätzt. Barnes-Aktionäre erhalten 47,50 $ pro Aktie in bar, was eine Prämie von etwa 22 % gegenüber dem ungestörten Schlusskurs der Barnes-Aktien vom 25. Juni 2024 darstellt.

Die Transaktion wird voraussichtlich vor Ende des ersten Quartals 2025 abgeschlossen sein und unterliegt der Genehmigung durch die Barnes-Aktionäre sowie den Regulierungsbehörden. Nach dem Abschluss wird Barnes ein privat geführtes Unternehmen, weiterhin jedoch unter dem Namen und der Marke Barnes Group operieren. Der Vorstand von Barnes hat die Vereinbarung einstimmig genehmigt und empfiehlt den Aktionären, für die Zustimmung zu stimmen.

Infolge dieser bevorstehenden Transaktion hat Barnes seine Finanzprognose für das Gesamtjahr 2024 ausgesetzt und wird keinen Konferenzanruf oder Webcast für das dritte Quartal 2024 durchführen.

Positive
  • All-cash transaction values Barnes at $3.6 billion enterprise value
  • Shareholders to receive $47.50 per share, a 22% premium over June 25, 2024 closing price
  • Potential for accelerated transformation and growth under Apollo's ownership
  • Opportunity to enhance capabilities and broaden product offerings
Negative
  • Barnes will be delisted from NYSE and become a private company
  • Suspension of financial guidance for full year 2024
  • Cancellation of third quarter 2024 earnings call and webcast

Barnes Shareholders to Receive $47.50 Per Share in Cash

BRISTOL, Conn.--(BUSINESS WIRE)-- Barnes Group Inc. (NYSE: B) (“Barnes” or “the Company”), a global provider of highly engineered products, differentiated industrial technologies and innovative solutions, announced today that it has entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) (“Apollo”) (the “Apollo Funds”) in an all-cash transaction that values Barnes at an enterprise value of approximately $3.6 billion.

The agreement provides that Barnes shareholders will receive $47.50 per share in cash. The per share purchase price represents a premium of approximately 22% over Barnes’ undisturbed closing share price on June 25, 2024, and a premium of approximately 28% over the volume weighted average price (VWAP) of Barnes common stock for the 90 days ending June 25, 2024.

“We are pleased to reach this agreement with Apollo Funds, which delivers immediate and certain cash value to our shareholders and positions Barnes to continue meeting and exceeding our customers’ needs for aerospace and industrial products, systems and solutions,” said Richard J. Hipple, Chairman of the Board of Directors. “The Board and management team carefully reviewed a range of potential opportunities and determined that this transaction with Apollo Funds maximizes value for our shareholders and is in the best interest of all stakeholders. The Board also recognizes the Barnes family, who founded the Company 167 years ago and continue to contribute to building the Company’s rich history through six generations of steadfast and profound leadership.”

“Over the past several quarters, Barnes has made tremendous strides to unlock the Company’s full potential by investing in our business, reshaping our portfolio, innovating our platforms and strengthening our financial performance,” said Thomas J. Hook, President and Chief Executive Officer of Barnes. “Apollo has a 35-year track record of investing in companies like Barnes that have leading businesses, strong teams and solid performance, and helping to position them for long-term, sustainable growth. 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. We look forward to working with the Apollo team as we continue to execute on our transformation strategy and capture the opportunities this transaction will create for Barnes, our employees, our shareholders, our customers, our suppliers and all stakeholders.”

“We are thrilled to partner with the talented team at Barnes, which has a tremendous heritage of building leading businesses with strong customer relationships in the aerospace and industrial sectors,” said Antoine Munfakh, Partner at Apollo. “We see opportunities to further invest in and grow Barnes’ businesses, which are positioned to benefit from long-term aerospace demand trends, as well as the need for high performance components and solutions for a range of end-markets. We applaud the Barnes team for the progress it has made with its transformation plan, and we believe this plan can be accelerated in a private company setting. We look forward to drawing on Apollo’s significant industry experience and value-added capabilities to support Barnes as it executes against its transformation and growth plans.”

Transaction Details

The transaction is expected to close before the end of Q1 2025 and is subject to customary closing conditions, including approval by Barnes shareholders and receipt of required regulatory approvals. The Barnes Board of Directors unanimously approved the definitive agreement and recommends that Barnes shareholders vote in favor of the transaction.

Upon completion of the transaction, Barnes will be delisted from the New York Stock Exchange and become a privately held company. Barnes will continue to operate under the Barnes Group name and brand.

Third Quarter 2024 Earnings and Update on Guidance

Barnes’ third quarter earnings release will be issued on October 25, 2024, before the market opens, as previously announced. In light of the announced transaction with Apollo Funds, Barnes will not be conducting its third quarter 2024 conference call and webcast. In addition, Barnes is suspending its financial guidance for the full year 2024 as a result of the pending transaction.

Advisors

Goldman Sachs & Co. LLC and Jefferies LLC are serving as financial advisors and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Barnes. Latham & Watkins LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal counsel to Apollo Funds.

Additional Information About the Merger and Where to Find It

This communication relates to the proposed transaction involving Barnes Group. In connection with the proposed transaction, Barnes Group will file relevant materials with the U.S. Securities and Exchange Commission (the “SEC”), including Barnes Group’s proxy statement on Schedule 14A (the “Proxy Statement”). This communication is not a substitute for the Proxy Statement or any other document that Barnes Group may file with the SEC or send to its shareholders in connection with the proposed transaction. BEFORE MAKING ANY VOTING DECISION, SHAREHOLDERS OF BARNES GROUP ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain the documents (when available) free of charge at the SEC’s website, www.sec.gov, or by visiting Barnes Group’s investor relations website, https://ir.onebarnes.com/home/default.aspx.

Participants in the Solicitation

Barnes and certain of its directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Barnes’ directors and executive officers is available in Barnes’ proxy statement for the 2024 annual meeting of stockholders, which was filed with the SEC on March 29, 2024 (the “Annual Meeting Proxy Statement”). Please refer to the sections captioned “Director Compensation,” “Executive Compensation,” and “Stock Ownership” in the Annual Meeting Proxy Statement. To the extent holdings of such participants in Barnes’ securities have changed since the amounts described in the Annual Meeting Proxy Statement, such changes have been reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC: Form 4, filed by Elijah Kent Barnes on May 6, 2024; Form 4, filed by Jakki L. Haussler on May 6, 2024; Form 4, filed Richard J. Hipple on May 6, 2024; Form 4, filed by Daphne E. Jones on May 6, 2024; Form 4, filed by Neal J. Keating on May 6, 2024; Form 4, filed by Hans-Peter Männer on May 6, 2024; Form 4, filed by Anthony V. Nicolosi on May 6, 2024; Form 4, filed by JoAnna Sohovich on May 6, 2024; Form 4, filed by Adam J. Katz on May 6, 2024; Form 4, filed by Julie K. Streich on July 22, 2024; Form 4, filed by Dawn N. Edwards on July 22, 2024; Form 4, filed by Marian Acker on July 22, 2024; Form 4, filed by Elijah Kent Barnes on August 5, 2024; Form 4, filed by Marian Acker on August 13, 2024; Form 4, filed by Dawn N. Edwards on August 13, 2024; Form 4, filed by Thomas J. Hook on August 13, 2024; Form 4, filed by Jay B. Knoll on August 13, 2024; Form 4, filed by Ian M. Reason on August 13, 2024; Form 4, filed by Julie K. Streich on August 13, 2024; and Form 3, filed by Troy W. Ingianni on September 20, 2024. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement and other relevant materials to be filed with the SEC in connection with the proposed transaction when they become available. Free copies of the Proxy Statement and such other materials may be obtained as described in the preceding paragraph.

Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding our ESG goals, commitments, and strategies. Forward-looking statements often contain words such as “anticipate,” “believe,” “expect,” “plan,” “estimate,” “project,” “continue,” “will,” “should,” “may,” and similar terms. These forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that may cause actual results to differ materially from any future results expressed or implied by the forward-looking statements. In addition, we have based some of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Such factors, risks and uncertainties include: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement between the parties to the proposed transaction or extend the anticipated timetable for completion of the proposed transaction; (2) the failure to obtain approval of the proposed transaction from the Company’s shareholders; (3) the failure to obtain certain required regulatory approvals or the failure to satisfy any of the other closing conditions to the completion of the proposed transaction within the expected timeframes or at all; (4) risks related to disruption of management’s attention from the Company’s ongoing business operations due to the proposed transaction; (5) the effect of the announcement of the proposed transaction on the ability of the Company to retain and hire key personnel and maintain relationships with its customers, suppliers and others with whom it does business, or on its operating results and business generally; (6) the ability of the Company to meet expectations regarding the timing and completion of the transaction; (7) the impacts resulting from the conflict in Ukraine, the Middle East or any other geopolitical tensions; and (8) the impacts of the any pandemics, epidemics or infectious disease outbreaks

For additional information and detailed discussion of these risks, uncertainties, and other potential factors that could affect our business and performance and cause actual results or outcomes to differ materially from the results, performance or achievements addressed in our forward-looking statements is included in our other filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update its forward-looking statements, which speak as of their respective dates, whether as a result of new information, future events, or otherwise.

About BARNES

Barnes Group Inc. (NYSE: B) leverages world-class manufacturing capabilities and market-leading engineering to develop advanced processes, automation solutions, and applied technologies for industries ranging from aerospace and medical & personal care to mobility and packaging. With a celebrated legacy of pioneering excellence, Barnes delivers exceptional value to customers through advanced manufacturing capabilities and cutting-edge industrial technologies. Barnes Aerospace specializes in the production and servicing of intricate fabricated and precision-machined components for both commercial and military turbine engines, nacelles, and airframes. Barnes Industrial excels in advancing the processing, control, and sustainability of engineered plastics and delivering innovative, custom-tailored solutions for industrial automation and metal forming applications. Established in 1857 and headquartered in Bristol, Connecticut, USA, the Company has manufacturing and support operations around the globe. For more information, visit please visit www.onebarnes.com.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2024, Apollo had approximately $696 billion of assets under management. To learn more, please visit www.apollo.com.

Category: General

Barnes Contact

Media and Investors

William Pitts

Vice President Investor Relations

860-973-2144

wpitts@onebarnes.com

Apollo Contacts

Noah Gunn

Global Head of Investor Relations

Apollo Global Management, Inc.

(212) 822-0540

IR@apollo.com

Joanna Rose

Global Head of Corporate Communications

Apollo Global Management, Inc.

(212) 822-0491

Communications@apollo.com

Source: Barnes Group Inc.

FAQ

What is the acquisition price for Barnes Group (NYSE: B)?

Apollo Funds will acquire Barnes Group for $47.50 per share in cash, valuing the company at an enterprise value of approximately $3.6 billion.

When is the Barnes Group (NYSE: B) acquisition expected to close?

The acquisition is expected to close before the end of Q1 2025, subject to customary closing conditions, including shareholder and regulatory approvals.

What premium does the acquisition offer Barnes Group (NYSE: B) shareholders?

The $47.50 per share price represents a premium of approximately 22% over Barnes' undisturbed closing share price on June 25, 2024.

Will Barnes Group (NYSE: B) remain a public company after the acquisition?

No, upon completion of the transaction, Barnes will be delisted from the New York Stock Exchange and become a privately held company.

How will the acquisition affect Barnes Group's (NYSE: B) operations?

Barnes will continue to operate under the Barnes Group name and brand, with Apollo aiming to accelerate the company's transformation and create new growth opportunities.

Barnes Group Inc.

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