KKR will acquire all of the outstanding shares of Gardner Denver common stock for US$76 per share in cash. This is a 39% premium on Gardner Denver’s share price on 24 October 2012, the day before the company confirmed that it had started to explore strategic alternatives for the business.
The Gardner Denver board of directors has unanimously approved the merger agreement and recommends that shareholders vote in favour of the transaction.
"In addition to the significant value to our shareholders, Gardner Denver will benefit from KKR’s track record of execution as the company continues to pursue its strategy focused on driving organic growth, particularly in underserved markets, and building new revenue streams in the aftermarket and through the introduction of innovative customer-centric solutions across its businesses," said Michael Larsen, Gardner Denver's president and CEO.
Pete Stavros, a member of KKR and head of the company’s Industrials investment team, said: "Gardner Denver is an outstanding business with a rich heritage of manufacturing excellence, innovation and quality that spans well over 100 years. The company has an impressive group of talented and dedicated employees, and we look forward to working closely with them to drive future growth and value. The long-term future of Gardner Denver is bright.”
The deal is expected to close in the third quarter of 2013.