Warburg Pincus and Berkshire Partners have entered into a definitive agreement to acquire Triumph Group Inc., a leading supplier of aircraft parts and services, in a transaction valued at approximately $3 billion, including debt. This acquisition represents a significant investment in the aerospace industry and underscores the continued demand for aftermarket aircraft components and MRO services.
The acquisition price of $26 per share represents a substantial premium of 39% to Triumph Group’s closing share price on Friday. This premium reflects the inherent value of Triumph Group’s business, its strong market position, and its potential for future growth. The transaction is expected to close in the second half of 2025, pending regulatory and shareholder approvals. Triumph’s stock surged in premarket trading following the announcement, reflecting investor confidence in the deal.
Triumph Group specializes in providing a comprehensive suite of aftermarket products and services for both commercial and military aircraft. Their offerings include engine components, integrated systems, and other essential parts. The company boasts a diverse customer base, including major original equipment manufacturers (OEMs). In a strategic move last year, Triumph Group divested its product support division to AAR Corp. for $725 million, streamlining its operations and focusing on its core aftermarket business.
This acquisition marks a continued collaboration between Warburg Pincus and Berkshire Partners in the aerospace sector. In 2019, the two firms jointly recapitalized Consolidated Precision Products Corp., demonstrating their shared interest and expertise in the industry. The combined experience and resources of Warburg Pincus and Berkshire Partners are expected to provide Triumph Group with the necessary support to further enhance its capabilities and expand its market presence. Goldman Sachs Group Inc. is acting as the financial advisor to Triumph Group, while Lazard is advising Berkshire Partners and Warburg Pincus. This transaction underscores the robust activity within the aerospace sector and the attractive investment opportunities presented by companies like Triumph Group.
This strategic acquisition positions Triumph Group for continued success in the growing aerospace aftermarket. The combination of Warburg Pincus and Berkshire Partners’ financial strength and industry knowledge with Triumph Group’s established platform creates a formidable force in the market. The transaction is expected to create significant value for all stakeholders involved. As the aerospace industry continues to evolve, Triumph Group, under its new ownership, is poised to capitalize on emerging trends and solidify its position as a leader in the aftermarket segment.
