U.S. private equity firm to buy Hroux-Devtek in deal valued at $1.35B

Aircraft landing gear maker Hroux-Devtek Inc. says it has signed a deal to be acquired by U.S. private equity firm Platinum Equity Advisors LLC in a deal valued at $1.35 billion.

Under the agreement, Platinum Equity will pay $32.50 in cash per share for the company.

Based in Longueuil, Que., Hroux-Devtek is one of the leading international manufacturers of aerospace products and the world's third-largest landing gear manufacturer.

The sale comes after a review of strategic alternatives by the company, led by a special committee of independent directors.

"After careful deliberation, the special committee and the board of directors have unanimously concluded that the transaction is in the best interests of the corporation and its stakeholders," Louis Morin, chairman of the Hroux-Devtek special committee, said in a statement issued Thursday.

Hroux-Devtek's shares closed at $25.32 on the Toronto Stock Exchange on Wednesday.

Platinum Equity says Hroux-Devtek will keep and invest in its headquarters and other operations in Quebec, including its manufacturing operations.

"I have great respect for the long tradition and proud history of the aerospace sector in the province and the contributions Hroux-Devtek has made to the industry," said Platinum Equity co-president Louis Samson, who grew up in Qubec City before moving to New York 25 years ago.

The transaction, which is subject to customary closing conditions, including regulatory and shareholder approvals, is expected to close before the end of the company's current financial year on March 31, 2025.