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Investing.com-- Warburg Pincus and Berkshire Partners are in advanced discussions to acquire aircraft parts and services supplier Triumph Group Inc (NYSE:TGI) in a deal valued at approximately $3 billion, including debt, Bloomberg News reported on Monday citing people familiar with the matter.
The private equity firms are reportedly considering an offer of $26 per share for Triumph, which is based in Radnor, Pennsylvania. A formal announcement could come as soon as Monday, though no final decision has been made and talks could still collapse, the report stated.
Triumph’s stock closed at $18.74 in New York on Friday, reflecting a market capitalization of about $1.5 billion. The company also holds approximately $966 million in debt, Bloomberg report said.
Triumph provides aftermarket products and services for both commercial and military aircraft, including engine components and integrated systems. Its key clients include original equipment manufacturers.
In 2023, the company divested its product support business to AAR Corp (NYSE:AIR). for $725 million as part of a strategic shift toward becoming a leaner aftermarket player, according to the report.
This would not be the first aerospace-related partnership between Warburg Pincus and Berkshire. In 2019, the firms worked together on the recapitalization of Consolidated Precision Products Corp., Bloomberg reported.