(Bloomberg) — Ingersoll Rand Inc. offered to buy SPX Flow Inc. for $3.59 billion as it continues to focus on the flow-control business, and disclosed a honed offer that was rejected.
The proposal of $85 per share, a 37% premium to SPX’s closing price on July 16, was made on June 10, Ingersoll Rand said in a statement Monday. If Ingersoll could close a deal, it would be the company’s largest acquisition since at least 2015, according to data collected by Bloomberg.
SPX rose 29% to $79.88 on Monday at 9:36 AM in New York after jumping a whopping $80.01, making it the largest intraday advance ever and a record price. The stock was up 7.1% this year through July 16. Ingersoll fell 2.8% to $46.81 on Monday.
The offer is part of Ingersoll’s efforts to strengthen its pumps, compressors and similar products business, approximately two years after it agreed to merge with Gardner Denver Holdings Inc. That deal cemented Ingersoll as one of the world’s leaders in flow control. Ingersoll agreed in June to buy pump maker Seepex for $513 million and Maximus, a control and software company, for $110 million.
Since it has acquired companies related to power control, the Davidson, North Carolina-based company has divested other companies. As part of the Gardner deal, Ingersoll’s heating and cooling operations were spun off to become Trane Technologies Plc. And in June, Ingersoll sold its Club Car golf cart unit to a private equity firm for $1.7 billion.
SPX rejected Ingersoll’s latest proposal on June 21, declining a request to “enter into a constructive dialogue,” Ingersoll said. The company said it remains committed to partnering with SPX, which is based in Charlotte, North Carolina.
Monday’s offer was sweetened from an offer of $81.50 a share made in late May.
(Shares updates in third paragraph)
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