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Crane Co ups CIRCOR bid price
Posted on Monday, 08 July 2019 12:56
New York-listed industrial products manufacturer Crane Co has increased its bid for flow and motion control products maker CIRCOR. The buyer had previously offered to pick up the business for USD 45.00 per share, thereby valuing the target at USD 1.70 billion, back in June of this year. However, the approach was ultimately rejected by CIRCOR’s shareholders, despite representing a 0.5 per cent premium to the group’s closing share price of USD 44.79 on 14th June, the last trading day prior to the offer being announced. The prospective target said the attempted acquisition was unsolicited, low value, highly conditional and opportunistic and that its existing strategic plan would deliver more value for shareholders. Not to be deterred, Crane Co has now come back with a second attempt, upping the original price to USD 48.00 in cash per item of stock. In addition, the firm has extended the offer and withdrawal rights until 19th July. The new approach represents a 4.2 per cent premium over CIRCOR’s closing share price of USD 46.07 on 5th July, the last trading day prior to the increased approach being announced. Founded in 1999, CIRCOR designs, makes and markets differentiated technology products and subsystems for clients in the oil and gas, industrial, aerospace and defence and commercial marine sectors. The company’s customer base numbers over 7,000 and spans more than 100 countries. It has sales and manufacturing facilities in North America, Europe and Asia and employs in excess of 4,400 staff. According to Zephyr, the M&A database published by Bureau van Dijk, Crane’s original offer is the largest deal targeting an industrial valve manufacturer to have been announced worldwide during 2019 to date by some distance. This was followed by a USD 95.08 million investment in Switzerland-based VAT Group by Massachusetts Mutual Life Insurance Company, which saw the acquiror increase its stake in the company from 5.0 per cent to 8.0 per cent. © Zephus Ltd