KKR to Acquire Gardner Denver for $3.9 Billion (GDI, KKR)

KKR to Acquire Gardner Denver for $3.9 Billion (GDI, KKR)


Compressor and vacuum manufacturer, Gardner Denver, Inc. (GDI) and investment company, KKR & Co. L.P. (KKR) reported on Friday morning that they have finalized a deal to merge the two companies.

Talks of a merger between the companies caused the share price to rise late Thursday. On Friday morning, an official deal was announced that KKR has agreed to merge with GDI for the price of $76 per share, valuing the company at $3.9 billion. This offer is above the firms prior offer of $75 per share, or a $3.68 billion value that the firm offered GDI last month. The amount of the finalize deal is above analysts estimates of $75 per share, but is still in the range of the average analyst expectation.

In the agreement, KKR will acquire all outstanding shares of GSI. The acquisition is subject to the approval of shareholders, regulatory approvals, and other customary closing conditions.

GDI’s CEO Michael Larsen commented, “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 shares were up 95 cents, or 1.29% during premarket trading Friday. The stock has increased 8% in the past year.

The Bottom Line
Shares of Gardner Denver, Inc. (GDI) have a 0.27% yield, based on Thursday’s closing price of $73.85.

Gardner Denver, Inc. (GDI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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