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Barnes Set to be Acquired by Apollo Funds for $3.6 Billion

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Barnes Group Inc. (B - Free Report) recently entered into an agreement to be acquired by funds managed by affiliates of Apollo Global Management, Inc. (APO - Free Report) . The all-cash deal is valued at $3.6 billion.

Based in the United States, Apollo Global focuses on investments across credit, private equity, infrastructure, secondaries and real estate markets. The firm targets private and public markets with diverse private equity strategies, including buyouts, distressed assets and corporate restructuring.

Per the deal, Barnes shareholders will receive $47.50 per share in cash. This purchase price is about 22% higher than its closing share price as of June 25, 2024. It also represents a premium of approximately 28% over the average price of the company’s stock for the 90 days leading up to that date.

Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close before the end of the first quarter of 2025. Barnes’ board of directors supports the agreement and advised shareholders to vote in favor of it. With the completion of the transaction, B will be delisted from the New York Stock Exchange and will operate as a private company under the name of Barnes Group.

Barnes is set to release its third-quarter earnings on Oct. 25, 2024, before market open. However, the company will not hold a conference call or webcast because of the pending transaction. B is also suspending its financial guidance for the entire year of 2024.

B’s Zacks Rank and Price Performance

Barnes is witnessing weakness in the Industrial segment due to softness in the motion control solutions and automation businesses. High labor, materials and freight costs are denting its margins. The adverse macroeconomic situation, supply-chain issues and high interest rates remain overhangs on the business.

B currently carries a Zacks Rank #4 (Sell). In the past year, the company’s shares have gained 41.8% compared with the industry’s 31.4% growth.

Zacks Investment Research
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Stocks to Consider

Some better-ranked companies from the same space are discussed below.

Graham Corporation (GHM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 133.3%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 17.3%.

Crane Company (CR - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 11.2%.

In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 0.6%.

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