Gardner Denver mulls potential sale, merger
Fri, 26 Oct 2012 18:09:07 GMT —
confirmed Thursday that it's exploring a possible sale.
A press release sent to investors said that the company's board of directors, its management team and the company's financial advisor, Goldman, Sachs & Co., are â??exploring strategic alternatives to enhance shareholder value.â??
Those alternatives include a possible sale or merger with another company.
Gardner Denver said that no decision has been made and that there can be no assurance that the Board's exploration of strategic alternatives will result in a sale.
Gardner Denver does not intend to discuss or disclose developments with respect to this process until the board of directors has approved what direction it will follow.
The company's former CEO Barry Pennypacker resigned from the company earlier this year.
Reuters news service
reported that shares of Gardner Denver jumped to a six-month high at 20.5 percent at $66. This represents a market value of about $3.2 billion. The company has long term debt of nearly $400 million as of June's end.
Reuters also reported that a number of private equity firms are considering offers for the company which are due Nov 5. TPG Capital LP, Onex Corp, KKR & Co LP, Blackstone Group LP and Bain Capital LLC are among the firms interested in a buyout, Reuters reported.
This move comes months after investor ValueAct Capital LLC called for a sale of the company.
The company's Quincy, Ill. based operation eliminated 30 manufacturing positions in May.
Gardner Denver manufactures compressors, liquid ring pumps and blowers for various industrial, medical, environmental, transportation and process applications. The company's pumps are used in the petroleum and industrial market.