US industrial machinery maker Gardner Denver explores sell-off
27 October 2012
Industrial machinery maker Gardner Denver Inc yesterday confirmed media reports that it is exploring a sale, a deal which would value the US industrial machinery maker over $3 billion.
Reacting to a Reuters report, the 150 year-old company said in a statement that it is ''exploring strategic alternatives to enhance shareholder value. These alternatives could include, among other things, enhancing the company's existing strategic plan or a possible sale or merger of the company.''
Gardner Denver also added that it has made no decision and that there can be no assurance that its exploration of strategic alternatives will result in any transaction and it does not intend to discuss or disclose developments until tits board has approved a definitive course of action.
Citing people familiar with the matter, Reuters had yesterday reported that several major private equity firms are considering initial offers for the company, which are due on 5 November.
Among the interested bidders are TPG Capital, Onex Corp, Kohlberg Kravis Roberts & Co, Blackstone Group and Bain Capital. TPG and Onex are expected to bid jointly, the report added.
With 2011 revenues of $2.4 billion, Gardner Denver is a leading global manufacturer of highly engineered products, including compressors, liquid ring pumps and blowers for various industrial, medical, environmental, transportation and process applications, pumps used in the petroleum and industrial market segments and other fluid transfer equipment.
The Wayne, Pennsylvania-based company has 40 manufacturing facilities located in the Americas, EMEA and Asia Pacific with offices in 33 different countries. Around 66 per cent of its revenue comes from outside of the US.
In August, Gardner Denver announced a restructuring of its European operations in order to optimize its global manufacturing footprint, reduce costs and boost profit. The restructuring includes consolidating its manufacturing facilities and reduce headcount in order to generate annual cost savings of $35-$40 million by 2016.