Apollo Global Management has announced a definitive agreement to acquire Barnes Group Inc., a diversified industrial manufacturer, in a deal valued at approximately $3.6 billion. The transaction will see Barnes Group, currently publicly traded, become a privately held company under Apollo’s ownership.

The acquisition, which is expected to close in the second half of 2023, values Barnes Group at $75 per share, representing a premium of approximately 40% to its closing price on January 27, 2023.

Barnes Group, headquartered in Bristol, Connecticut, specializes in engineered products for a wide range of industries, including aerospace, transportation, healthcare, and industrial. The company operates through its two main segments: Aerospace & Industrial and Industrial Technologies.

The move by Apollo signifies a growing trend of private equity firms seeking to acquire established public companies. It is also indicative of the private equity industry’s continued interest in the industrial sector, which is expected to benefit from a global economic recovery and increasing demand for manufacturing and industrial products.

While the specific reasons for Apollo’s acquisition of Barnes Group haven’t been fully disclosed, the private equity firm likely sees significant potential for growth and value creation within the company.

The transaction is subject to customary closing conditions, including regulatory approvals and Barnes Group shareholder approval.