Yahoo Finance Gores’ Platinum to Take Aerospace Firm Private for $1 Billion
(Bloomberg) -- Platinum Equity Advisors LLC struck a deal to buy Canadian aerospace manufacturer Héroux-Devtek Inc. for about $1 billion, including debt, with the support of Quebec’s largest pension fund.
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Platinum, the private equity firm run by Detroit Pistons basketball team owner Tom Gores, agreed to pay C$32.50 in cash per share, a 28% premium to Wednesday’s closing price. Héroux-Devtek’s senior management, including Executive Chairman Gilles Labbé, will roll over some of their shares.
Héroux-Devtek, the world’s third-largest maker of landing gear, expects the deal to close before the end of March 2025, according to a statement Thursday. The shares traded just below C$31 as of 10:43 a.m. in Toronto.
Platinum Equity plans to keep Héroux-Devtek’s headquarters and its research and development facilities in suburban Montreal, the statement said. The Caisse de Depot et Placement du Quebec said it will vote in favor of the deal; it’s the largest shareholder with about 14%, according to data compiled by Bloomberg.
“I have great respect for the long tradition and proud history of the aerospace sector in the province and the contributions Héroux-Devtek has made to the industry,” Platinum Co-President Louis Samson said.
National Bank Financial, Bank of Nova Scotia and Desjardins Capital Markets gave advice to the company and its board, while BMO Capital Markets advised Platinum and is the lead arranger of financing.
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