Mumbai: Private equity firm Carlyle Group has agreed to buy aircraft and auto parts maker Sequa Corp. in a cash deal valued at $2.7 billion.

Carlyle''s offer of $175 a share represents a premium of 54 per cent to the closing price of Sequa''s Class A and Class B shares on July 6, Sequa said in a joint statement released by both parties.

Sequa said the estate of Norman Alexander, who founded the company, and certain other entities holding about a 54 per cent stake have agreed to vote in favor of the transaction.

Sequa Corp''s ARC Automotive unit produces air bags for Ford Motor Co. and General Motors Corp.

Carlyle, the Washington-based private-equity firm, will acquire all of the outstanding stock of Sequa for $175 per share in cash.

Alexander, who founded the company more than five decades ago, died in December 2006 at the age of 92. The executors of his estate, which controls about 54 per cent of voting shares, have agreed to support the sale, the statement said.

Alexander retired as chief executive officer of New York-based Sequa in 2005 and stayed on as executive chairman.

Sequa''s profit more than doubled last year on sales gains in its aerospace and industrial-machinery divisions.

The acquisition, which will be financed with equity and debt, is expected to close in the fourth quarter, the statement said. Sequa has $894.5 million in debt.

The purchase is subject to approval by Sequa shareholders and federal regulators. Sequa has until Aug. 23 to solicit competing offers.

Carlyle was founded in 1987 by David Rubenstein, William Conway and Daniel D''Aniello and initially focused on defense and aerospace. It now invests in industries including automobiles, retail, telecommunications and real estate.

Last month, Carlyle agreed to acquire General Motors'' Allison Transmission unit with Toronto-based Onex Corp. for $5.6 billion. Carlyle also bought Goodyear Tyre & Rubber Co.''s Engineered Products division for $1.5 billion earlier this year.

Evercore Group LLC is advising Sequa, while Cahill Gordon & Reindel is acting as legal counsel, the statement said. Lehman Brothers Holdings Inc., Citigroup Inc. and JPMorgan Chase & Co. are serving as financial advisers for Carlyle.