SPX FLOW Acquired for $3.8B

Lone Star Funds has reached a deal to acquire the company for $86.50 per share as part of an all-cash agreement.
Avient to Acquire DSM for $1.485B

SPX FLOW, Inc. (NYSE: FLOW), a provider of process solutions for the nutrition, health and industrial markets, says it has agreed to be acquired by Lone Star Funds in an all-cash deal valued at $3.8 billion.

The agreement includes the assumption of debt, SPX FLOW said.

The purchase price represents a premium of nearly 40% over SPX FLOW’s closing stock price on July 16, 2021, the last trading day prior to the publication of an article in the July 19, 2021, edition of The Wall Street Journal which stated the company received an “unsolicited purchase offer.”

Earlier this year, SPX FLOW turned down acquisition offers from Ingersoll Rand that were valued at $85 per share and $81.50 per share.

“We are pleased to have reached this agreement with Lone Star, which is the result of a comprehensive review of alternatives, including a robust sale process, conducted by our board in consultation with independent advisors,” said Robert F. Hull, Jr., chairman of the SPX FLOW board of directors. “As part of the process, SPX FLOW held discussions with multiple strategic and financial parties and evaluated the transaction against the company’s standalone prospects, performance and outlook. We believe this transaction is the right path forward and achieves our goal of maximizing value for SPX FLOW shareholders.”

The transaction was unanimously approved by the SPX FLOW Board of Directors and is expected to close in the first half of 2022, subject to receipt of certain regulatory approvals. The approvals include expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, as well as SPX FLOW shareholder approval and other customary closing conditions.

The transaction is not subject to a financing condition, SPX FLOW said.

After the deal is finalized, SPX FLOW will become a privately held company, and its shares will no longer trade on The New York Stock Exchange.

As a condition to the transaction, SPX FLOW has agreed to suspend payment of its quarterly dividend, effective immediately.

Related Posts

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.