Global private equity firm The Carlyle Group has signed a definitive merger agreement to acquire Chromalloy Gas Turbine parent Sequa for $2.7 billion.
The deal falls on the heels of Carlyle’s announcement last week that it will purchase Arinc from its current shareholders, including several commercial airlines.
Under the terms of the merger agreement with Sequa, Carlyle will acquire all of the outstanding Class A and Class B shares of the firm for $175.00 per share in cash, a premium of 54% to the closing prices of Sequa’s shares on July 6.
The merger is subject to the approval of Sequa stockholders and customary closing conditions and regulatory approvals.
“Today’s announcement is the result of a careful and thorough analysis conducted by our board of directors and a transaction committee of independent directors established by the board to oversee the evaluation process,” says Sequa chairman Gail Binderman in a statement.
“This company, which was created by my father, Norman E Alexander, more than five decades ago, has thrived by following the principles he established and the standards he set.
“Consistent with his ideals and his lifelong commitment to this company, we made this decision because we felt that it was the best way to deliver maximum value to our stockholders.
Carlyle has a demonstrated track record of investing in and improving the companies it acquires and has great financial and operational expertise. Our board unanimously supports becoming a part of the Carlyle family and recommends that our stockholders vote in favor of this transaction.”
A special meeting of Sequa’s stockholders will be held as soon as practicable after the preparation and filing of a proxy statement with the Securities and Exchange Commission, says the company.
Sequa’s largest business unit Chromalloy Gas Turbine provides the airline industry with a broad range of aftermarket services, including advanced repairs for jet engine parts.
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Source: FlightGlobal.com
