BURLINGTON, Mass. & NEW YORK--CIRCOR International, Inc. (CIR), a leading provider of mission-critical flow control products and services, has announced that it has entered into a definitive agreement to be acquired by investment funds managed by KKR, a global investment firm. The acquisition will be an all-cash transaction valued at approximately $1.6 billion, including the assumption of debt.
Under the terms of the agreement, KKR will acquire all outstanding shares of CIRCOR common stock for $49 per share in cash. This represents a 55% premium to the company's closing stock price on June 2, 2023. The transaction is expected to close in the fourth quarter of 2023, subject to approval from CIRCOR shareholders and regulatory authorities, as well as the satisfaction of customary closing conditions.
CIRCOR International is known for its market-leading brands that provide flow control solutions to customers in the Industrial and Aerospace & Defense markets. With a global presence and approximately 3,100 employees, the company serves more than 14,000 customers in approximately 100 countries.
Helmuth Ludwig, CIRCOR's Board Chair, expressed satisfaction with the agreement, stating, "Our agreement with KKR marks the successful culmination of a strategic review process conducted by the Board, supported by external advisors and the management team." He further emphasized the belief that the transaction would unlock significant incremental value for CIRCOR's stockholders. Ludwig also acknowledged the dedication of CIRCOR's team and their efforts in establishing the company as an industry leader.
Tony Najjar, President and CEO of CIRCOR, highlighted the value the transaction would bring to stockholders and the potential for growth in the flow control space. Najjar stated, "Having the support and resources of an experienced investor like KKR will help us expand our presence in the flow control space and support our mission to deliver the highest-quality products and services to our customers, many of which play a critical role in protecting national security."
KKR, through its North America Fund XIII, is making this investment in CIRCOR. The firm has recently gained experience in investing in flow control technologies and aerospace and defense industry suppliers globally. KKR's commitment to expanding CIRCOR's equity ownership program will allow all employees to participate in the benefits of ownership, recognizing the importance of employee engagement in building stronger companies.
Upon completion of the transaction, CIRCOR will become a privately held company, wholly owned by KKR's investment funds. The company's common stock will no longer be listed on any public market.
The acquisition of CIRCOR International by KKR underscores the confidence in CIRCOR's market position, its strong brand portfolio, and its potential for future growth. The transaction aligns with KKR's investment strategy in the industrials sector and further strengthens its presence in the flow control industry.
*Advisors: Evercore, J.P. Morgan Securities LLC, and Ropes & Gray LLP are advising CIRCOR, while Citi and Kirkland & Ellis LLP are advising KKR.*
About CIRCOR International, Inc.:
CIRCOR International, Inc. is a global provider of mission-critical flow control products and services for the Industrial and Aerospace & Defense markets. The company serves its customers through a portfolio of market-leading brands and has a global presence with approximately 3,100 employees.
About KKR:
KKR is a leading global investment firm that offers alternative asset management, capital markets, and insurance solutions. The firm aims to generate attractive investment returns by employing a patient and disciplined investment approach.
For more
information about CIRCOR International, please visit their investor relations website at [http://investors.circor.com](http://investors.circor.com).
For additional information about KKR, please visit their website at [www.kkr.com](www.kkr.com).
*Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice. Readers should consult with their own financial advisors before making any investment decisions.*