Pumps and valves maker Crane makes $894-million hostile bid for rival Circor
(Reuters) - U.S. industrial manufacturer Crane Co on Tuesday made a hostile takeover bid for smaller rival Circor International Inc for about $894 million, after an earlier offer was rejected by Circor’s board.
Crane’s cash offer of $45 per share represents a premium of about 47% to Circor’s closing price on Monday. Circor’s shares jumped 48.4% to $45.44 in early trading.
Crane had sent a letter on April 30 to Circor’s board, offering to buy the company, but it was rejected no offer of further discussions.
“While we had hoped to complete a transaction privately, Circor’s rejection of our proposal...led to our decision to make our proposal known to Circor shareholders,” Crane Chief Executive Officer Max Mitchell said in a statement.
Crane, which makes pumps and valves for industries, said its offer for Circor represents an enterprise value of about $1.7 billion, 13.5 times Circor’s last 12-month adjusted EBITDA.
The deal would add brands such as Allweiler, Houttuin, IMO Pump and IMO AB to Crane’s portfolio.
Circor, which makes products including centrifugal pumps and automatic recirculating valves, had a long-term debt of about $733.6 million as of March 31.
Wells Fargo Securities advised Crane on the deal, while Skadden, Arps, Slate, Meagher & Flom LLP was its legal adviser.
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