Triumph Group’s Stock Soars on Takeover News

Triumph Group stock (NYSE: TGI) is a notable pre-market gainer, up 34.47% as news of a takeover hit newswires.

Private equity firms Warburg Pincus and Berkshire Partners have come to an agreement to take the firm private in a deal valued at approximately $3 billion, inclusive of debt.

The buyout firms have proposed an offer of $26 per share in cash for Triumph Group Inc., representing a premium of nearly 39% over the closing share price on the prior Friday. Following the announcement,

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The transaction is expected to conclude in the second half of the year, pending regulatory and shareholder approvals. Triumph Group has existing debt amounting to approximately $966 million. Triumph specializes in aftermarket products for both commercial and military aircraft, including engine components and integrated systems. Last year, the company divested its product support division to AAR Corp. for $725 million.

Warburg Pincus and Berkshire Partners have a history of collaboration, having previously partnered on an aerospace-related transaction in 2019. For this transaction, Goldman Sachs Group Inc. is serving as the financial adviser to Triumph Group, while Lazard Inc. is providing financial advice to Berkshire Partners and Warburg Pincus.