NEW YORK Dec 12 Industrial machinery maker SPX Corp has outbid private equity firms competing to buy Gardner Denver Inc by a wide margin, offering to pay more than $4 billion for the rival, according to two people familiar with the matter.
Private equity firms Advent International, KKR & Co LP , and a consortium of TPG Capital Management LP and Onex Corp made all-cash offers in the mid-to-high $70s per share range, the people said on Wednesday. But SPX has topped those bids by offering substantially more, they said.
The SPX offer was so much higher that Gardner Denver cancelled management meetings with private equity bidders that were initially set for this week and did not even seek second-round offers, the people said. Instead, it turned to SPX for one-on-one discussions with the goal of finalizing a deal before the end of the year, they said.
The people spoke on condition of anonymity because the matter is confidential. SPX, KKR, Advent and TPG declined to comment, while Onex and Gardner Denver did not immediately respond to requests for comment.