Published on 28 Jun 2023 on Market Watch

Circor’s stock rises toward 6-year high after KKR affirms intention to buy company, after Arcline...

Shares of Circor International Inc. rallied 4.9% toward a six-year high in morning trading Wednesday, but pared an earlier intraday gain of 6.7%, after KKR & Co. Inc. affirmed its intention to buy the flow-control-products company. KKR’s announcement comes after private-equity firm Arcline Investment Management LP submitted to buy Circor, which is about 12% . KKR’s stock fell 0.9% in morning trading. “KKR is confident that its transaction to acquire Circor maximizes shareholder value while minimizing regulatory, market, and industry risks,” KKR said in a statement. “In sharp contrast to Arcline Investment Management, whose funds own a direct competitor of Circor called Fairbanks Morse Defense (“FMD”), KKR believes its transaction presents no risk of antitrust delays or failure to close at the expense of Circor shareholders given the lack of competitive overlap.” Circor shares have soared 72.7% over the past three months, while KKR’s stock has gained 8.0% and the S&P 500 has tacked on 10.0%.