Circor International (NYSE: CIR) rallied in pre-market trading at the time of publishing on Tuesday after the provider of mission-critical flow control products and services for the aerospace & defense markets announced that it has accepted a revised proposal from affiliates of investment funds managed by KKR. KKR will acquire Circor at an increased price of $51 per share instead of the prior price of $49 per share in cash. This all-cash deal is valued at $1.7 billion, including the assumption of debt.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The acquisition is expected to close later this year and Circor stated in its press release that KKR had agreed to “provide a full equity backstop for the consummation of the merger,” and had also agreed to a reverse termination fee of $125 million payable to Circor in case the merger is not completed. KKR agreed to raise the existing customary reverse termination fee related to closing obligations from $67 million to $100 million. On Circor’s part, the company will pay KKR a revised termination fee of $42.75 million as compared to a prior termination fee of $28 million.
The revised deal was executed after Circor received an unsolicited proposal from a third party to acquire all of the company’s outstanding shares for $52.65 per share in cash.
CIR stock has soared by more than 90% in the past six months.