Bloomberg News

Gardner Denver Said to Attract CCMP Capital in Bid Process

February 11, 2013

Gardner Denver Inc. (GDI:US), the maker of industrial equipment that’s seeking a buyer, attracted interest from private-equity firm CCMP Capital Advisors LLC ahead of a Feb. 21 bid deadline, said two people familiar with the matter.

CCMP, spun out by JPMorgan Chase & Co. in 2006, may be willing to buy all or part of the company, said the people, who asked not to be named because talks are private. Advent International Corp., which had been negotiating with Gardner Denver since November, has grown less interested and may only consider an offer if the other bids fail, they said.

Goldman Sachs Group Inc., the adviser to Wayne, Pennsylvania-based Gardner Denver (GDI:US), has given suitors 10 more days to make offers, the people said. Gardner Denver, whose market value exceeds $3 billion, also earlier held talks with private-equity firms including KKR & Co. and the team of Onex Corp. and TPG Capital, they said. New York-based KKR remains interested, while the TPG-Onex team has stepped back and is monitoring the process, according to two people.

The private-equity firms, which had considered bids of $73 to $75 a share late last year, don’t want to pay more than that now, the people said. That compares with the $85 a share that SPX Corp. had planned to bid for Gardner Denver last year before talks collapsed, people with knowledge of the matter said then.

Gardner Denver sank 2.3 percent to $68.83 as of 4:15 p.m. in New York.

Gardner Denver makes compressors, pumps and other products for industries including manufacturing and energy exploration.

Vikram Kini, a spokesman for the company, didn’t return calls seeking comment on the talks. Representatives at CCMP, Advent, TPG, KKR and Goldman Sachs declined to comment. Officials at Onex didn’t immediately return calls seeking comment.

An eventual sale would mark a victory for activist investor ValueAct Capital Management LLC, owner of about 5.1 percent of Gardner Denver’s stock, according to data compiled by Bloomberg as of Sept. 30. The firm began lobbying for a sale in July after Gardner Denver Chief Executive Officer Barry Pennypacker resigned.

To contact the reporters on this story: David Welch in New York at dwelch12@bloomberg.net; Cristina Alesci in New York at calesci2@bloomberg.net; Jodi Xu in New York at jxu205@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net


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