CNBC's Leslie Josephs: Boeing 737 Max Crisis Delays Carlyle Aerospace Deal
Boeing 737 Max crisis delays Carlyle aerospace deal
- Carlyle Group has paused the sale of an engine-parts maker it owns because of uncertainty over the Boeing 737 Max.
- The private equity giant didn’t attract high enough bids for the company, Paradigm Precision, according to people familiar with the matter.
Private equity giant Carlyle Group has paused the sale of an engine-parts maker because of uncertainty about the Boeing 737 Max, which has been grounded for nearly a year, according to people familiar with the matter.
Paradigm Precision, which Carlyle has been growing for about a decade, didn’t attract high enough bids as the private equity firm had hoped because of the 737 Max crisis, said the people, who spoke on the condition of anonymity because the discussions were private.
One of the top bids was more than $1 billion, according to one of the people. Paradigm counts General Electric and United Technologies among its customers.
The delayed sale is the latest impact from of the 737 Max’s grounding. The plane has been grounded since March after two fatal crashes killed all 346 people aboard the flights.
Boeing suspended production of the jetliners — its best-selling plane — last month. It is not clear exactly when the 737 Max will fly again, but Boeing last month said it expects regulators to sign off on the planes midyear.
