Arcline Investment submits proposal to acquire Circor for $57.00

Arcline Investment announced that it submitted a binding proposal to acquire 100% of the shares of Circor for $57.00 per share, in an all-cash, fully financed transaction, to the Circor board of directors. The proposal represents a premium of approximately 12% to the $51.00 per share price reflected in Circor’s revised merger agreement with affiliates of KKR (KKR) and a premium of approximately 80% to Circor’s closing share price on June 2, the last trading day prior to Circor’s June 5 announcement of its original transaction with KKR. The offer represents a total valuation of over $59.00 per share, when factoring in over $2.00 per share in value leakage through termination fees that the board has agreed with KKR despite Arcline’s active interest. The proposal to the board is accompanied by fully executed transaction documents reflecting all of the terms of Arcline’s proposal and is supported by fully committed financing from BMO Capital Markets Corp. and Bank of Montreal. Arcline’s binding proposal will expire automatically if the board does not declare it to be a “Superior Proposal” and provide to KKR a “Determination Notice” by no later than 8:00 pm Eastern Time on Thursday, June 29.