SPX FLOW on Monday said it agreed to be acquired by an affiliate of private-equity firm Lone Star Funds for $86.50 a share in cash in a deal valued at $3.8bn, including the assumption of debt.

The deal represents a 1% premium to Friday’s closing price for SPX, a Charlotte, N.C., maker of components for machinery used by food-and-beverage and industrial companies, but the purchase price is nearly 40% above SPX’s closing price of $62.09 on July 16, before The Wall Street Journal reported that Ingersoll Rand Inc. had made takeover bids for the company.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

SPX said the agreement with Lone Star is the result of a comprehensive review of alternatives, adding that it held talks with multiple strategic and financial parties and evaluated the transaction against its standalone prospects, performance and outlook.

SPX said it expects the transaction to close in the first half of 2022.

Dallas-based Lone Star has organized 21 private equity funds with aggregate capital commitments totaling roughly $85 billion since establishing its first fund in 1995.

Shares of SPX Flow fell less than 1% to $84.95 in light premarket trading Monday.

Source: MarketWatch

Can’t stop reading? Read more