KKR to Acquire Flow Control Supplier CIRCOR for $1.6B

Burlington, Massachusetts-based flow control products manufacturer CIRCOR International announced June 5 it has entered into a definitive agreement to be acquired by investment funds managed by private equity firm KKR. The all-cash transaction is valued at approximately $1.6 billion, including the assumption of debt, according to a news release.

Under the terms of agreement, KKR will acquire all outstanding shares of CIRCOR common stock for $49 per share in cash, the release said.

“This transaction will create significant value to our stockholders, reflecting the dedication of our team in executing on our strategic priorities, the strength of our family of brands and the deep relationships we have built with our customers,” CIRCOR President and CEO Tony Najjar said in the release. “We believe that having the support and resources of an experienced investor like KKR will help us expand our presence in the flow control space and support our mission to deliver the highest-quality products and services to our customers, many of which play a critical role in protecting national security.”

“CIRCOR stands out as an innovative and trusted solution provider, manufacturing mission-critical flow control products for industrials, aerospace and defense customers,” KKR partner Josh Weisenbeck said in the release. “We believe the Company is in a strong position to grow and benefit from the attractive tailwinds in those markets. We look forward to working closely with Tony and his talented team to drive further growth and value through new product development, aftermarket expansion, strategic acquisitions and allowing all CIRCOR employees to have the opportunity to participate in the benefits of ownership of the Company.”

Evercore, J.P. Morgan Securities LLC and Ropes & Gray LLP are serving as advisors to CIRCOR while KKR is advised by Citi and Kirkland & Ellis LLP, according to the release.

CIRCOR adds to New York-based KKR’s flow control technologies portfolio, which includes investments in Ingersoll Rand, Flow Control Group, Hensoldt and Novaria Group.

In 2022, CIRCOR posted revenue of $787 million, which was up 4% from 2021, with organic revenue up 9%. CIRCOR’s revenue in its Aerospace & Defense segment was $283 million, an increase of 12% from 2021. The company had $504 million revenue in its Industrial segment, which was flat compared to 2021.