Barnes Group Rises Following Report of Apollo Global’s Acquisition Talks

Shares of Barnes Group surged over 10% in premarket trading on Friday after a report indicated that private equity firm Apollo Global Management is in advanced talks to acquire the aerospace components manufacturer.

Based in Bristol, Connecticut, Barnes Group is reportedly negotiating to grant exclusivity to Apollo, which is expected to outperform other competing buyout firms, according to sources. The deal is anticipated to value Barnes at over $45 per share, with the company’s stock closing around $40 on the previous Thursday.

If successful, the agreement could be finalized in the coming weeks; however, ongoing negotiations carry the risk of falling apart, potentially allowing another bidder to enter the fray.

Founded in 1857, Barnes manufactures components for sectors including aerospace, healthcare, and electronics. Its aerospace division produces parts for both commercial and military turbine engines, while its industrial unit provides molding and automation solutions across various industries. The company employs approximately 5,700 workers across 43 manufacturing sites.

The move toward a potential acquisition follows a challenging financial report for Barnes, which recorded a net loss of $46.8 million in the second quarter of 2024, with revenue of $382.2 million—falling short of analysts’ expectations. Despite this, the company’s stock has risen 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 changes to the company’s board and a comprehensive strategic review. In March, Barnes and Irenic reached a cooperation agreement, which included appointing co-founder Adam Katz to its board.