Arcline Investment Management LP, a growth-oriented private equity firm, today announced that on June 28, 2023, it submitted a binding proposal to acquire 100% of the shares of CIRCOR International Inc. (NYSE: CIR) for $57.00 per share, in an all-cash, fully financed transaction, to the CIRCOR Board of Directors. The proposal represents a premium of approximately 12% to the $51.00 per share price reflected in CIRCOR’s revised merger agreement with affiliates of KKR & Co. Inc., and a premium of approximately 80% to CIRCOR’s closing share price on June 2, 2023, the last trading day prior to CIRCOR’s June 5, 2023 announcement of its original transaction with KKR. The offer represents a total valuation of over $59.00 per share, when factoring in over $2.00 per share in value leakage through termination fees that the Board has agreed with KKR despite Arcline’s active interest.
The proposal to the Board is accompanied by fully executed transaction documents reflecting all of the terms of Arcline’s proposal and is supported by fully committed financing from BMO Capital Markets Corp. and Bank of Montreal. Arcline’s binding proposal will expire automatically if the Board does not declare it to be a “Superior Proposal” and provide to KKR a “Determination Notice” (as defined in the amended agreement and plan of merger between CIRCOR and affiliates of KKR) by no later than 8:00 pm Eastern Time on Thursday, June 29, 2023.
BMO Capital Markets Corp. is serving as financial advisor to Arcline in connection with the offer, and Bass, Berry & Sims PLC is serving as legal advisor.
About Arcline Investment Management
Arcline was established in September 2018 and has $8.9 billion of cumulative capital commitments. Arcline seeks to invest in technology driven, meaningful to the world industrial businesses that enable a better future. For more information visit www.arcline.com.
