NEW YORK Feb 11 Gardner Denver Inc is considering leveraged recapitalization as an alternative, as efforts to sell itself to private equity snag over price and the business outlook sags for the industrial machinery maker, people familiar with the matter said on Monday.
Buyout firm KKR Co & LP is preparing to submit a final takeover offer for Gardner Denver by the deadline of Feb. 21, but a few other private equity bidders have either dropped out or are no longer seriously pursuing a deal, the people said.
Buyout firm Advent International has put its pencils down, while the partnership of TPG Capital Management and Onex Corp has not done enough due diligence that would allow it to make a final offer next week, the people said.
With the auction showing signs of weakening, Gardner Denver is looking at alternative transactions and has held talks with buyout firm CCMP Capital about investing as part of a leveraged recapitalization, they said.
Representatives for TPG, Onex, KKR, CCMP and Advent declined to comment or did not immediately respond to requests for comment. Gardner Denver could not be immediately reached for comment. The sources asked not to be named because the matter is not public.