Blackstone to exit MB Aerospace to Barnes

• Barnes will buy MB Aerospace for an enterprise value of around $740m 
• MB Aerospace was last acquired by Blackstone in a leveraged buyout in 2015
• Blackstone is an alternative asset manager based in New York

Blackstone plans to sell MB Aerospace to Barnes Group for an enterprise value of around $740 million.

MB Aerospace is a provider of precision aero-engine component manufacturing and repair services serving major aerospace and defence engine original equipment manufacturers, Tier 1 suppliers, and maintenance, repair and operations providers. The company is based in Motherwell, UK. It has another 10 facilities and approximately 1,450 employees across the US, UK, Poland and Taiwan.

Blackstone acquired MB Aerospace in a leveraged buyout in 2015.

The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals.

MB Aerospace is expected to generate around $330 million of revenue and $65 million of EBITDA in the calendar year 2023.

Barnes anticipates that the effective purchase price multiple will be around 11.4x 2023 EBITDA and 8.9x inclusive of pro forma estimated run rate cost synergies, according to a release.

MB Aerospace will become part of Barnes Aerospace upon closing of the transaction.

Barnes will likely finance the transaction with cash on hand and additional acquisition financing, the release said.

Barnes estimates net leverage to be between 3.7x and 3.9x consolidated EBITDA, with a plan to reduce net leverage to below 3.0x within 12 months and 2.5x within 24 months following closing.

“The acquisition of MB Aerospace, the largest in Barnes’ history, is a transformational opportunity that is a significant catalyst for our already world-class aerospace business,” said Thomas J Hook, president, and CEO of Barnes. “MB is an exceptional strategic fit for us with highly complementary programme focus, global operations, technical capabilities, and product offerings.”

Barnes Aerospace is a global provider of fabricated and precision-machined components and assemblies for OEMs of turbine engines, nacelles, airframes and industrial gas turbines, and the military.

Barnes Group is headquartered in Bristol, Connecticut.

Blackstone is an alternative asset manager with $991 billion in assets under management. The firm is based in New York.