Gardner Denver Enters into Definitive Agreement to Be Acquired By KKR
Gardner Denver (NYSE: GDI) has signed definitive merger agreement with Kohlberg Kravis Roberts & Co. L.P. and its affiliates, KKR. The transaction, made through KKR’s investment funds, is valued at approximately $3.9 billion including the assumption of debt.
"After a thorough review of strategic alternatives to enhance shareholder value, we are pleased to provide our shareholders with immediate and substantial cash value representing a significant premium to our unaffected share price," says Michael M. Larsen, Gardner Denver's President and Chief Executive Officer. "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. We anticipate this transaction will create opportunities to accelerate the operating initiatives already underway and we are confident that it will also be beneficial for our employees, customers and all other stakeholders.”
KKR will acquire all outstanding shares of Gardner Denver common stock for $76 per share in cash according to the terms of the merger. This price was determined as a premium of 39 percent to Gardner Denver’s share price as of October 24, 2012. This is significant as the day prior to the company confirming its foray into the exploration of strategic alternatives. Although the Board Directors of Gardner Denver unanimously voted to approve the merger and recommends its shareholders vote in favor of the transaction, the merger agreement is still subject to approval from shareholders, regulatory approvals and other customary closing conditions. The transaction is expected to close in the third quarter of 2013.
"Our success and this positive development is a testament to our dedicated employees who will continue to build on the momentum that our team has worked so hard to create," continues Mr. Larsen. "As we position Gardner Denver to enter its next phase of growth and success, we look forward to working closely with KKR to seamlessly close this transaction."
Pete Stavros, KKR Member and head of the firm's Industrials investment team, says: "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."