Benzinga | Dec 13, 2021 08:07AM EST

SPX Flow Agrees To Be Acquired By Lone Star For $3.8B

SPX Flow Inc (NYSE:FLOW) agreed to be acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at $3.8 billion, including the assumption of debt.

* The per-share value of $86.50 represents a premium of ~1% over the closing price on Friday. It represents a premium of nearly 40% over the company's closing stock price on July 16, 2021, the last trading day before reports about receiving an unsolicited purchase offer.

* The company had announced in late July 2021 that its Board had authorized a review of strategic alternatives, including a possible sale or merger.

* Previously, the company had received and rejected an unsolicited, conditional, non-binding proposal from Ingersoll Rand Inc (NYSE:IR) for $85.00 per share. This followed a similar unsolicited proposal from Ingersoll Rand for $81.50 per share.

* Upon completing the Lone Star Funds transaction, SPX Flow will become a privately held company, and the shares will no longer trade on NYSE. The transaction is expected to close in 1H 2022.

* As a condition to the transaction, SPX Flow suspended its quarterly dividend payment, effective immediately.

* Price Action: FLOW shares are trading higher by 0.14% at $85.75 during the premarket session on Monday.