KKR & Co, the private-equity firm run by Henry Kravis and George Roberts, agreed to buy industrial equipment maker Gardner Denver Inc for about US$3.7 billion after raising its offer.
KKR is to pay US$76 a share for Wayne, Pennsylvania-based Gardner Denver, the companies said on Friday in a statement.
That is a 39 percent premium to the price on Oct. 24, the day before the company announced it was exploring a sale.
KKR last month offered US$75 a share.
“The long-term future of Gardner Denver is bright,” Pete Stavros, head of KKR’s industrials team, said in the statement.
The deal, expected to close in the third quarter, is valued at US$3.9 billion, including the assumption of Gardner Denver’s debt.
Gardner Denver said in October last year it was reviewing options including a sale after ValueAct Holdings LP, which disclosed in July last year that it had become the third-largest investor, pressed for a deal as “the most effective way to deliver maximum value to shareholders.”
The sale to KKR comes after rival SPX Corp and private-equity firms Advent International Corp and the team of Onex Corp and TPG Capital walked away from takeover discussions, people familiar with the matter said.
Gardner Denver rose 1.2 percent to US$74.74 at the close of trading in New York. The company makes compressors, pumps and other products for industries including manufacturing and energy exploration. Other suitors for the company included private-equity firms CCMP Capital Advisors LLC, Bain Capital LLC and Blackstone Group LP.
KKR climbed 1.2 percent to US$19.03. The stock has gained 25 percent this year, outpacing the 8.8 percent increase in the Standard & Poor’s 500 Index of large US companies.
The deal is subject to several provisions, including approval by China’s commerce ministry, South Africa’s competition commission and US and European antitrust regulators, according to a Gardner Denver filing with the US Securities and Exchange Commission on Friday.
The company would be required to pay KKR a fee of US$103.4 million if it terminates the agreement, and KKR would have to pay Gardner Denver US$263.1 million if the firm fails to complete the deal, according to the filing.
The pump maker’s market has faced an influx of competitors amid a historic boom in natural gas production, and Gardner Denver has since focused on boosting margins through measures such as restructuring its European operations.
The manufacturer estimated the cost cuts will result in annualized pretax savings of US$35 million to US$40 million by 2016.
Shares of Gardner Denver peaked at US$91.50 on July 22, 2011.
ValueAct held a 5.1 percent stake in the company as of Feb. 22, according to data compiled by Bloomberg.
DEVELOPING TALENT: The electronics contractor is looking to recruit people to work in core tech fields and emerging industries like electric cars and robotics Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, has launched a recruitment drive, offering a monthly salary of no less than NT$45,000 (US$1,485) to university graduates. For those with a master’s degree, the starting pay would be NT$52,000 per month at the minimum, while doctorate degree holders would receive at least NT$60,000 a month, Hon Hai said a statement issued early this week. The latest recruitment drive is aimed at attracting talent in core technology fields — artificial intelligence, semiconductors and next-generation mobile communications — and emerging industries — electric vehicles, digital healthcare and robotics, the
MRT TRAVEL FALLS: In February, ridership on the Taipei MRT System fell 8.96 percent from an average of 2.01 million per day in January Scooter sales jumped 13 percent last month as more commuters turned to two-wheelers to avoid public transportation amid the COVID-19 pandemic, the latest statistics showed. Sales expanded to 74,493 units last month, compared with 65,913 units in February, statistics released on Wednesday by Kwang Yang Motor Co (光陽工業) and the Ministry of Transportation and Communications showed. In the first quarter, aggregate sales slid 0.51 percent year-over-year to 186,627 units, from 187,580 units, data showed. Kwang Yang, the nation’s biggest scooter manufacturer, continued to lead the market by selling 24,136 vehicles last month, growing 6.12 percent from 20,785 units in the previous month, while
Asustek Computer Inc (華碩), the nation’s leading PC vendor, yesterday launched its first dual-screen gaming laptop powered by Intel Corp’s latest central processing units (CPUs). The PC manufacturer’s announcement closely followed the US chipmaker’s unveiling of its 10th Generation Core H-series, the fastest commercial mobile processors with speeds of up to 5 gigahertz. Although Asustek’s Zephyrus Duo 15, the highlight of its Republic of Gamers line, is not the company’s first laptop with two screens, it is its first designed specifically for gaming. Nestled between the primary display panel and the keyboard, the secondary display, which Asustek calls the ScreenPad Plus, is angled
NO ILL EFFECT: Last month’s data mainly reflected deals made in February, when the spread of COVID-19 was still relatively mild in Taiwan, housing brokers said Housing transactions in the six special municipalities totaled 19,824 units last month, up 7.8 percent from a year earlier, brokers said, citing government data. Last month’s data mainly reflected deals made in February, when the pinch of the COVID-19 pandemic was not yet evident, they said. Taoyuan posted the largest improvement, with housing transactions soaring 36.6 percent year-on-year to 3,676 units, local government data showed. Taiwan Realty Co (台灣房屋) attributed the pickup to the completion of two presale residential projects in the municipality. Houses in Taoyuan have increasingly gained in popularity in the past few year years due to relatively affordable home prices and