KKR to buy US machinery maker Circor in $1.6bn deal

US machinery maker Circor International said on Monday that it has agreed to be bought by private equity firm KKR in a $1.6bn deal.

Under the terms of the agreement, KKR will pay $49 per share for each Circor share, which is a 55% premium to the closing share price on Friday.

Circor president and chief executive Tony Najjar 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.

"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."

KKR is making the investment in Circor through its North America Fund XIII. The company said it builds on its recent experience investing in flow control technologies and aerospace and defence industry suppliers globally, including Ingersoll Rand, Flow Control Group, Hensoldt, and Novaria Group.

Circor shares surged in pre-market trade and by 1305 BST, were up 50% at $47.44.