Barnes Group (B) on Monday agreed to be acquired and taken private by funds managed by affiliates of Apollo Global Management (APO) in a deal that values the industrial company at about $3.6 billion.

Barnes shareholders will receive $47.50 per share in cash. After completion of the deal, Barnes will no longer trade on the New York Stock Exchange and become a privately-held company, but will continue to operate under the Barnes Group name. Barnes shares increased 2.7% in premarket activity.

"The board and management team carefully reviewed a range of potential opportunities and determined that this transaction with Apollo Funds maximizes value for our shareholders and is in the best interest of all stakeholders," Barnes Chairman Richard Hipple said in a statement. Barnes develops advanced processes, automation solutions and applied technologies for industries ranging from medical and personal care to mobility, packaging and aerospace.

The deal, which requires clearance from regulators and approval from Barnes' shareholders, is expected to be completed before the end of the first quarter of 2025.

"Under Apollo Funds ownership, we aim to accelerate our transformation, enhance our capabilities, broaden our product offerings and create new opportunities for growth and innovation," Chief Executive Thomas Hook said. "We look forward to working with the Apollo team as we continue to execute on our transformation strategy."

As a result of the deal, Barnes suspended its full-year 2024 guidance and will not conduct a conference call for its third-quarter results scheduled to be released on Oct. 25. In July, the company said it expected adjusted earnings to be in a range of $1.55 to $1.75 per share for the ongoing year and organic sales to grow between 4% and 6%.

"We see opportunities to further invest in and grow Barnes' businesses, which are positioned to benefit from long-term aerospace demand trends, as well as the need for high performance components and solutions for a range of end-markets," Antoine Munfakh, a partner at Apollo, said. "We applaud the Barnes team for the progress it has made with its transformation plan, and we believe this plan can be accelerated in a private company setting."