Circor International Enters Acquisition Deal With KKR

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Circor International Inc. (Circor), a provider of mission critical flow control products and services for the industrial, aerospace and defense markets, has entered into a definitive agreement to be acquired by investment funds managed by KKR, a global investment firm, in an all cash transaction valued at approximately $1.6 billion, including the assumption of debt.

Under the terms of the agreement, KKR acquires all outstanding shares of Circor common stock for $49 per share in cash, representing a 55% premium to the company’s closing stock price on June 2, 2023.

“This transaction will create significant value to our stockholders, reflecting the dedication of our team in executing on our strategic priorities, the strength of our family of brands and the deep relationships we have built with our customers,” says Tony Najjar, president and chief executive officer at Circor. “We believe that having the support and resources of an experienced investor like KKR will help us expand our presence in the flow control space and support our mission to deliver the highest-quality products and services to our customers, many of which play a critical role in protecting national security.”

KKR is making its investment in Circor through its North America Fund XIII. The investment builds on KKR’s experience investing in flow control technologies and aerospace and defense industry suppliers globally, including Ingersoll Rand (formerly known as Gardner Denver), Flow Control Group, Hensoldt and Novaria Group.

The board of directors of Circor has unanimously approved the transaction and recommends that Circor shareholders vote in favor of the transaction. The transaction is expected to close in the fourth quarter of 2023, subject to the receipt of approval from the company’s shareholders and certain required regulatory approvals, as well as the satisfaction of other customary closing conditions. The board has the right to terminate the merger agreement to enter into a superior proposal, subject to the terms and conditions of the merger agreement.

“Circor stands out as an innovative and trusted solution provider, manufacturing mission-critical flow control products for industrials, aerospace and defense customers,” says Josh Weisenbeck, a KKR partner who leads KKR’s industrials investment team. “We believe the company is in a strong position to grow and benefit from the attractive tailwinds in those markets. We look forward to working closely with Tony and his talented team to drive further growth and value through new product development, aftermarket expansion, strategic acquisitions and allowing all Circor employees to have the opportunity to participate in the benefits of ownership of the company.”

Following the close of the transaction, KKR will support Circor in expanding its equity ownership program to allow all employees to have the opportunity to participate in the benefits of ownership of the company. This strategy is based on the belief that employee engagement is a key driver in building stronger companies. Once the transaction is complete, Circor will be a privately held company wholly owned by KKR’s investment funds and will no longer have its common stock listed on any public market.