Barnes Group Shares Surge Amid Acquisition Talks

Investing.com — Barnes Group shares surged more than 10% premarket Friday following a report from Reuters that private equity firm Apollo Global Management (NYSE:APO) is in advanced discussions to acquire the aerospace components manufacturer.

Based in Bristol, Connecticut, Barnes Group (NYSE:B) is reportedly negotiating to grant exclusivity to Apollo, who is expected to outbid other buyout firms competing for the company, according to Reuters.

Reuters, citing sources, indicated that the deal could value Barnes at over $45 per share while the company’s stock closed around $40 on Thursday.

If successful, the deal could be finalized in the coming weeks, although negotiations are ongoing and may still fall apart, allowing for other bidders to emerge.

Founded in 1857, Barnes manufactures components for various industries, including aerospace, healthcare, and electronics. Its aerospace unit produces parts for both commercial and military turbine engines, and its industrials unit develops molding and automation solutions across multiple sectors.

Barnes employs approximately 5,700 workers across 43 manufacturing locations, according to its website.

This potential acquisition follows Barnes’ net loss of $46.8 million in Q2 2024, with revenues of $382.2 million that missed analysts’ expectations. Its stock has increased about 25% since the start of the year.

The discussions with Apollo come after pressure from activist investor Irenic Capital, which acquired a stake in Barnes in 2022 and advocated for board changes and a strategic review. In March, Barnes entered a cooperation agreement with Irenic, appointing co-founder Adam Katz to its board.