Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
On Friday, private equity powerhouse Kohlbeg Kravis Roberts (KKR) announced it has agreed to buy out engineered products manufacturer Gardner Denver (NYSE: GDI ) in a deal valued at $3.9 billion, including a small amount of assumed debt.
KKR will pay $76 per share for Gardner Denver's outstanding shares, a price KKR describes as a 39% premium to what these shares cost on October 24, 2012, when the company first announced that it was up for sale. The premium is significantly less -- just 3% -- when compared to what Gardner Denver shares were fetching yesterday, one day before KKR confirmed its buyout offer.
Nonetheless, Gardner Denver says its Board of Directors has voted to accept KKR's offer, and avers that "a thorough review of strategic alternatives" shows this is probably the best offer it's going to get. KKR's offer values the shares at approximately 1.6 times sales, a bit over 2.5 times book value, and 14.4 times earnings.
The shares reacted with mild enthusiasm to KKR's offer, rising 1.2% in Friday trading, to $74.71.
RSS Headlines
Fool UK
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Report this Comment On March 12, 2013, at 11:10 AM, pissedinvestor wrote:
At least one analyst has set a target price for Gardner’s stock at $85 and according to Thomson Reuters StarMine data the intrinsic value of Gardner’s stock is $85.47.
http://classactioncentral.com/kkr-to-buy-gardner-denver-gdi-...
Add your comment.