Shares of SPX Flow Inc. FLOW,
rose 24% to record territory in premarket trading Monday, after the Ingersoll Rand Inc. IR,
confirmed it has made an all-cash buyout offer that values the industrial component manufacturer and distributor at approximately $3.59 billion, but said the offer was rejected. Ingersoll Rand shares fell 1.4% before the opening. Ingersoll Rand said it made an offer on June 10 to buy SPX Flow for $85 a share, which is 20.4% higher than the record May 7 price of $70.60. The company said SPX Flow rejected the offer on June 21 and declined its request to enter into negotiations. Ingersoll Rand said this was about a month after the squeeze-out offer of $81.50 per share was rejected by SPX Flow. “While we had hoped to close a transaction privately, we remain committed to a friendly and constructive partnership with SPX Flow,” said Ingersoll Rand Chief Executive Vicente Reynal. “To be clear, while we believe SPX Flow is a strong strategic match with Ingersoll Rand, we will be disciplined in our approach and will not deviate from our proven commitment to pursuing growing transactions that provide significant, additional post-synergy opportunities for value creation.” Shares of SPX Flow are up 7.1% through Friday, while shares of Ingersoll Rand are up 5.7% and the S&P 500 SPX,
has increased by 15.2%.