SPX Flow Agrees To Be Acquired By Lone Star For $3.8B

SPX Flow Inc FLOW agreed to be acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at $3.8 billion, including the assumption of debt.

• The per-share value of $86.50 represents a premium of ~1% over the closing price on Friday. It represents a premium of nearly 40% over the company's closing stock price on July 16, 2021, the last trading day before reports about receiving an unsolicited purchase offer.
• The company had announced in late July 2021 that its Board had authorized a review of strategic alternatives, including a possible sale or merger.
• Previously, the company had received and rejected an unsolicited, conditional, non-binding proposal from Ingersoll Rand Inc IR for $85.00 per share. This followed a similar unsolicited proposal from Ingersoll Rand for $81.50 per share.
• Upon completing the Lone Star Funds transaction, SPX Flow will become a privately held company, and the shares will no longer trade on NYSE. The transaction is expected to close in 1H 2022. 
• As a condition to the transaction, SPX Flow suspended its quarterly dividend payment, effective immediately.
• Price Action: FLOW shares are trading higher by 0.14% at $85.75 during the premarket session on Monday.