KKR will acquire industrial equipment maker Gardner Denver for $76 per share or $3.7 billion. Gardner Denver had revenues in 2012 of approximately $2.4 billion. The transaction is expected to close in the third quarter and is valued at $3.9 billion including the assumption of Gardner Denver’s debt.
Fully committed debt financing will be provided by UBS Securities, Barclays, Citigroup, Deutsche Bank Securities, RBC Capital Markets, Mizuho Corporate Bank, and KKR Capital Markets, an affiliate of KKR, in the form of senior secured credit facilities. Deutsche Bank Securities, Citigroup, Barclays, UBS Securities, RBC Capital Markets, Mizuho Corporate Bank, and KKR Capital Markets also arranged debt financing in the form of a senior unsecured bridge facility.
Gardner Denver designs, manufactures, and markets engineered industrial machinery and related parts and services. The company operates in two segments: (i) the Industrial Products Group offers rotary screw, reciprocating, and sliding vane air and gas compressors; positive displacement, centrifugal, and side channel blowers; and vacuum pumps for use in manufacturing, transportation and general industry, and original equipment manufacturer (OEM) and engineered system applications; (ii) the Engineered Products Group designs, manufactures, markets, and services pumps, compressors, liquid-ring vacuum pumps, reciprocating pumps, diaphragm vacuum pumps, water jetting systems, and related aftermarket parts used in oil and natural gas well-drilling, servicing, and production, as well as in medical and laboratory, and industrial cleaning and maintenance. Gardner Denver is based in Wayne, PA (www.gardnerdenver.com).
“Gardner Denver is an outstanding business with a rich heritage of manufacturing excellence, innovation and quality that spans well over 100 years. The company has an impressive group of talented and dedicated employees, and we look forward to working closely with them to drive future growth and value. The long-term future of Gardner Denver is bright,” said Pete Stavros, head of the KKR’s industrials investment team.
Goldman, Sachs & Co. is serving as financial advisor to Gardner Denver and Skadden, Arps, Slate, Meagher & Flom is serving as legal advisor. UBS Securities and Simmons & Company International are serving as financial advisors to KKR and Simpson Thacher & Bartlett is serving as legal advisor.
KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $66 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-11-13