Blackstone leads $300m financing for Arlington’s Gooch & Housego buyout

Blackstone has spearheaded a $300 million private credit financing deal to facilitate Arlington Capital Partners' acquisition of UK-based aerospace and defense components firm Gooch & Housego, as per Bloomberg. The financing package consists of a unitranche loan, a delayed-draw term loan, and a revolving credit facility, with Blackstone contributing the majority of the capital.

JPMorgan Chase and Jefferies were among the other investors. Arlington had initially funded the acquisition solely through equity before incorporating the debt package. This transaction underscores the sustained appetite for private credit financing in leveraged buyouts, with sponsors preferring direct lenders for their execution certainty and pricing, despite competition from the broader syndicated loan market.

Direct lenders have also backed other UK take-private transactions, such as JTC and Hargreaves Lansdown. The funding arrives during a surge in private equity interest in UK-listed companies, which are currently trading at discounted valuations compared to their US counterparts. Takeover activity in the UK is anticipated to be its most active in over a decade, with aerospace and defense firms particularly attracting attention.

Apollo Global Management recently acquired EasyJet, while Arcline is exploring a takeover of aerospace supplier Senior. JPMorgan advised Arlington on the Gooch & Housego deal, while Kirkland & Ellis handled legal counsel for the former, and Rothschild & Co, Investec, and Burges Salmon provided advice and representation for Gooch & Housego and the latter, respectively.