KKR to acquire Circor in US$1.6bn deal

Investment firm KKR has entered into a definitive agreement to acquire Circor International Inc in an all cash transaction valued at approximately US$1.6 billion, including the assumption of debt.

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Circor provides flow control products and services for the Industrial and Aerospace & Defense markets. Pump brands include Allweiler, Houttuin, Imo, Tushaco, Warren Pumps and Zenith.

KKR will acquire all outstanding shares of Circor common stock for US$49 per share in cash, representing a 55% premium on the company’s closing stock price on Friday 2 June 2023.

“Our agreement with KKR marks the successful culmination of a strategic review process conducted by the board, supported by external advisors and the management team,” said Helmuth Ludwig, Circor’s board chair. “As part of our comprehensive strategic review, initiated in March 2022, we engaged in extensive dialogue with a number of parties that expressed interest in acquiring all or parts of the company. We believe that this transaction and the immediate cash value it will provide to Circor’s stockholders best achieves the board’s goal of unlocking the significant incremental value within Circor for its stockholders.”

Tony Najjar, president and CEO of Circor, said: “We believe that having the support and resources of an experienced investor like KKR will help us expand our presence in the flow control space and support our mission to deliver the highest-quality products and services to our customers, many of which play a critical role in protecting national security.”

Josh Weisenbeck, a KKR Partner who leads KKR’s Industrials investment team, said: “We look forward to working closely with Tony and his talented team to drive further growth and value through new product development, aftermarket expansion, strategic acquisitions and allowing all Circor employees to have the opportunity to participate in the benefits of ownership of the company.”

KKR is making its investment in Circor through its North America Fund XIII. The investment builds on KKR’s recent experience investing in flow control technologies and aerospace and defense industry suppliers globally, including Ingersoll Rand (formerly known as Gardner Denver) and Flow Control Group.

When the transaction closes, KKR will support Circor in expanding its equity ownership program to allow all employees to have the opportunity to participate in the benefits of ownership of the company.

The transaction is expected to close in the fourth quarter of 2023.