Pumps and valves manufacturer Crane has made a hostile takeover bid for CIRCOR for approximately $894 million (€802 million), as reported by Reuters.
The unsolicited proposal to acquire all outstanding shares of CIRCOR common stock for $45 per share in cash was rejected by CIRCOR.
According to a statement from CIRCOR, the proposal was received on 30 April 2019.
The statement reads: “Consistent with its fiduciary duties and in consultation with its independent legal and financial advisors, CIRCOR’s board of directors carefully reviewed that proposal.
“Following that review, the board of directors unanimously rejected Crane’s proposal and determined that the proposal was highly opportunistic, substantially undervalued CIRCOR and its future prospects, and did not constitute a basis for engaging in further dialogue with Crane at this time.”
After CIRCOR’s board rejected the initial proposal on 13 May with no offer of further discussions, Crane made the decision to make the proposal known to CIRCOR shareholders.
“Our proposal provides CIRCOR shareholders with attractive value and certainty compared to the continued uncertainty surrounding CIRCOR’s plans to improve operating performance,” said Max Mitchell, president and CEO of Crane. “Based on CIRCOR’s history of underperformance and inability to meet its own financial targets, we believe CIRCOR’s standalone plan is unlikely to generate value comparable to what we are proposing.”