Private equity firm Arcline Investment Management LP said Thursday it’s fully committed to its $57-a-share offer for flow-control-products company Circor International Inc. CIR and that it expects to get regulatory approval for the deal. “Any potential overlap with portfolio companies of Arcline represents a negligible portion of CIRCOR’s business, which operates in a highly competitive and fragmented sector,” New York-based Arcline said in a statement. The statement comes a day after Arcline announced its bid, which is about 12% above a previously-agreed offer from KKR & Co. Inc.’s of $51 a share. KKR said Wednesday that it’s confident that its offer “maximizes shareholder value while minimizing regulatory, market, and industry risks. In sharp contrast to Arcline Investment Management, whose funds own a direct competitor of Circor called Fairbanks Morse Defense (“FMD”), KKR believes its transaction presents no risk of antitrust delays or failure to close at the expense of Circor shareholders given the lack of competitive overlap.” Arcline also said it’s offer is not contingent on obtaining financing, and therefore presents “no meaningful executive risk” for Circor’s shareholders. Circor stock was not yet active premarket but has gained 124% in the year to date, while the S&P 500 SPX has gained 14%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
0
0
