KKR Acquires Gardner Denver for $3.9 Billion
March 8, 2013 | 2:32 pm CST
KKR Acquires Gardner Denver for $3.9 Billion

KKR Acquires Gardner Denver for $3.9 BillionWAYNE, PA and NEW YORK, NY - Industrial products producer Gardner Denver Inc. and Kohlberg Kravis Roberts & Co. L.P. (KKR) have entered into a definitive merger agreement valued at approximately $3.9 billion, including the assumption of debt. The agreement, announced March 8, is expected to be finalized in the third quarter of 2013.

Gardner Denver is a worldwide manufacturer of engineered products, including compressors, liquid ring pumps, blowers and wood treating/impregnation for various industrial and manufacturing market segments. The company has two segments: the Industrial Products Group and the Engineered Products Group, both with manufacturing facilities in the Americas, EMEA and Asia Pacific.

Under the terms of the agreement, KKR will acquire all of the outstanding shares of Gardner Denver common stock for $76 per share in cash, subject to approval. "In addition to the significant value to our shareholders, Gardner Denver will benefit from KKR's track record of execution as the company continues to pursue its strategy focused on driving organic growth, particularly in underserved markets, and building new revenue streams in the aftermarket and through the introduction of innovative customer-centric solutions across its businesses," Michael M. Larsen, Gardner Denver's president and CEO said in a statement. "We anticipate this transaction will create opportunities to accelerate the operating initiatives already underway and we are confident that it will also be beneficial for our employees, customers and all other stakeholders."

Gardner Denver posted revenues in 2012 of approximately $2.4 billion. Founded in 1859, the company's brands include: Gardner Denver, Air Drive, Air Relief, Belliss & Morcom, Bottarini, Champion, CompAir, Drum, Elmo Rietschle, Emco, Wheaton, Hoffman, Hydrovane, Ilmvac, Lamson, MAKO, NASH, Oberdorfer, Priestman, Reavell, Robuschi, Thomas, TODO, Webster Drives, Welch and Wittig.

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a global investment firm with $75.5 billion in assets under management as of Dec. 31, 2012. The Gardner Denver transaction is being made through KKR's investment funds.

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