Circor's Stock Soars Following $1.6 Billion Buyout Deal with KKR, Including Debt

Circor International Inc., a leading provider of flow-control products, experienced a significant surge in its stock price on Monday following the announcement of its acquisition by KKR & Co. in a cash deal valued at $1.6 billion, including debt.

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Under the terms of the agreement, Circor shareholders will receive $49 for each share they own, representing a substantial 54.7% premium to the previous day's closing price of $31.67. This deal implies a market capitalization of $999.1 million for Circor.

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Circor's stock witnessed a remarkable 49.9% surge in morning trading, marking its largest one-day gain since its initial public offering in October 1999. The stock is also on track to reach its highest closing price since October 2018.

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Shares of KKR, the global investment firm, showed a slight 0.2% increase in response to the acquisition news.

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The transaction, expected to be finalized in the fourth quarter of 2023, follows Circor's strategic review initiated in March 2022. The company's Chairman, Helmuth Ludwig, expressed confidence that the deal would unlock significant incremental value for Circor's stockholders, fulfilling the board's objectives.

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Circor's CEO, Tony Jajjar, emphasized the positive impact of KKR's support and resources, stating that it would aid in expanding the company's presence in the flow control sector and further its mission of delivering high-quality products and services to customers, many of whom have critical roles in national security.

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As part of the acquisition, KKR plans to bolster Circor's stock-ownership program for its employees, offering additional support for the company's growth.

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Circor's stock has shown a remarkable 98.2% increase year-to-date, while KKR shares have advanced by 15.8%. In comparison, the S&P 500 index has climbed 11.6% during the same period

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