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August 19, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Stamford’s Crane Co. says it will call off takeover bid by week’s end

Stamford industrial products manufacturer Crane Co.’s contentious offer to acquire a Massachusetts firm could be called off by the end of this week.

Crane initially approached Scott Buckhout, president and CEO of Circor – which manufactures flow and motion control products for a variety of sectors – on April 30 with its proposal, which at that time it said reflected an enterprise value of about $1.7 billion at a multiple of approximately 13.5x the previous 12-month adjusted EBITDA.

Last month, Burlington-based Circor announced that its board had unanimously rejected Crane’s bid and was recommending that its shareholders not tender their shares into the offer.

On July 8, Crane amended its offer to acquire all outstanding shares of Circor for $48 per share, which it said represents a 57% premium to the undisturbed market close on May 20, and 46% and 61% premiums over the three- and six-month volume weighted average share prices, respectively.

That bid too was unanimously rejected by Circor’s board on July 11, “as it substantially undervalues the company and is low-value, highly conditional and opportunistic.”

Now, according to Crane, “absent substantive engagement this week, it will cease its efforts to acquire Circor and will not extend its tender offer.”

Circor had no immediate comment.