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Gardner Denver private equity hopefuls could lose out to SPX

11 Dec 2012

Four private equity firms interested in industrial equipment maker Gardner Denver have suffered a blow after global manufacturing group SPX entered exclusive talks to buy the company, it is understood.

KKR, Advent International and a partnership between TPG Capital and Onex Corp are all believed to be interested in the business according to Reuters, but have been told to wait until January while it negotiates with SPX.

It said 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.

The report added Gardner Denver had 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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