Two private-equity giants are partnering to acquire Triumph Group in a takeover worth approximately $3 billion. According to a joint statement by Warburg Pincus and Berkshire Partners, their newly formed entity will acquire and manage the Pennsylvania-based designer and manufacturer of parts and systems for aerospace and defense programs.
In October 2024, Triumph Group reported it was evaluating “strategic options,” including acquisition.
“We are pleased to have reached this agreement, which reflects the culmination of the board's robust process and will deliver immediate, certain, and premium cash value to our shareholders,” stated chairman, president, and CEO Dan Crowley. “Over the last few years, Triumph successfully optimized our portfolio, built around a world-class team and capabilities. This transaction recognizes our company's position as a valued provider of mission-critical engineered systems and proprietary components for both OEM and aftermarket customers. As a privately held company … Triumph will have an enhanced ability to meet our customers' evolving needs and provide more opportunities for our valued employees.”
Triumph Group was created in 1993 and grew by acquisition of various businesses supporting civilian and military aircraft development, production, repair, and service. It was long identified for its composites manufacturing and aerostructures business, but those assets were divested in 2020 and 2021, respectively.
Currently, Triumph produces components and systems for actuation, engine controls, gearboxes and accessory drive units, mechanical and thermal systems, and interior fittings. It also offers relevant MRO services for civil and military aircraft. Its five subsidiary businesses operate 28 plants in 12 states and seven countries.
Triumph customers include fleet operators like Federal Express and UPS, and manufacturers like Boeing, Lockheed, Sikorsky, Gulfstream, Bell, Northrop-Grumman, Airbus, GE Aerospace, Rolls-Royce, and Pratt & Whitney.
“Triumph has a strong reputation as a leader in highly engineered aerospace components and systems and we are excited about partnering with them in this next chapter of growth,” according to Warburg Pincus managing director Dan Zamlong,. “With our deep experience investing in and developing aerospace platforms, we look forward to working with Triumph's talented global team to increase opportunities for its portfolio and capture the growing demand for high-quality aerospace components.”
The takeover is expected to close later this year, subject to customary closing conditions, including approval by Triumph shareholders and regulatory approvals.
