KKR Taking Gardner Denver Private in $3.9 Billion Deal

Updated

On Friday, private equity powerhouse Kohlbeg Kravis Roberts (KKR) announced it has agreed to buy out engineered products manufacturer Gardner Denver in a deal valued at $3.9 billion, including a small amount of assumed debt.

KKR will pay $76 per share for Gardner Denver's outstanding shares, a price KKR describes as a 39% premium to what these shares cost on October 24, 2012, when the company first announced that it was up for sale. The premium is significantly less -- just 3% -- when compared to what Gardner Denver shares were fetching yesterday, one day before KKR confirmed its buyout offer.

Nonetheless, Gardner Denver says its Board of Directors has voted to accept KKR's offer, and avers that "a thorough review of strategic alternatives" shows this is probably the best offer it's going to get. KKR's offer values the shares at approximately 1.6 times sales, a bit over 2.5 times book value, and 14.4 times earnings.


The shares reacted with mild enthusiasm to KKR's offer, rising 1.2% in Friday trading, to $74.71.

The article KKR Taking Gardner Denver Private in $3.9 Billion Deal originally appeared on Fool.com.

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