Lone Star to Buy Pumpmaker SPX Flow for $3.8 Billion
(Bloomberg) -- Lone Star Funds agreed to buy industrial pump and valve maker SPX Flow Inc. for $3.8 billion including assumed debt, the latest deal in the manufacturing industry.
SPX Flow investors will get $86.50 a share in cash, the companies said Monday, 1% higher than Friday’s closing price. The deal is a premium of 39% over SPX’s closing price on July 16, before news of a possible deal was first reported.
Bloomberg reported last month that Lone Star was considering a bid for SPX Flow, citing people with knowledge of the matter. SPX has been running a strategic review, working with Morgan Stanley, after rejecting a $3.59 billion takeover bid by Ingersoll Rand Inc. in July.
SPX makes products including air and gas-treatment equipment and pumps under brands such as Deltech and Johnson Pump, according to its website.
A deal would add to a record surge in industrial mergers this year. Recent transactions include Emerson Electric Co.’s deal for a majority stake in Aspen Technology Co. and Lockheed Martin Corp.’s proposed takeover of Aerojet Rocketdyne Holding’s Inc.
The SPX deal is expected to close in the first half of next year, subject to regulatory and shareholder approvals.
SPX was little changed at $85.66 at 9:54 a.m. in New York. The stock had climbed 48% this year through Dec. 10.
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