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Private equity firms outmuscled by SPX in Gardner Denver bidding

13 Dec 2012

Four private equity firms interested in industrial equipment maker Gardner Denver have been well outbid by strategic SPX, it is understood.

The company has offered to pay more than $4bn for its rival according to Reuters, which said Gardner Denver share had hit an eight-month high following the news.

Competing offers from KKR, Advent International and a partnership between TPG Capital and Onex Corp came in at between $3.6bn and $3.9bn, it added.

Previous reports have suggested SPX hopes to wrap a deal up by the end of the year, creating an industrial machinery conglomerate with a market value of about $7bn.

Gardner Denver was said to have cancelled management meetings scheduled with buyout firms this week, and did not even seek final offers before turning to SPX for one-on-one talks.

Blackstone and Bain Capital previously took part in the auction but did not make it through to the second round in a sale process which is expected to fetch about $3.5bn.

Gardner was founded in 1859 and makes industrial compressors, blowers, pumps and fuel systems.

The US-based business has 40 manufacturing facilities globally and posted revenues of $2.4bn last year, about two-thirds of which were generated abroad.

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