March 9, 2013- Gardner Denver Inc. (GDI), a major manufacturer of industrial equipment, has agreed to sell itself to KKR & Company, a private investment firm, for three billion seven hundred million dollars after the powerful buyout organization decided to increase an offer it had made some time ago.
Under terms of the new agreement, KKR & Company will pay $76.00 per share to the seller’s stockholders, a figure that represents a huge thirty nine percent premium and increase over what the buyer offered way back on October 24, 2012 which was the day before executives at Gardner Denver Inc. announced their intention to explore the possibility of selling their company.
At that time, KKR & Company was intrigued enough to offer to purchase Gardner Denver Inc. and offered to pay $75.00 per share to those who owned stock. That offer was rejected.
The new offer actually will cost KKR & Company three billion nine hundred million dollars because, in addition to the $3.7 billion it has agreed to pay, KKR & Company will also assume the seller’s existing debt which amount to about two hundred million dollars.
Gardner Denver Inc. stock rose 1.2% Friday morning to $18.95, due primarily to the release of the news about the impending sale.