Circor International (NYSE:CIR) stock is taking off on Monday following news that global investment firm KKR is taking the company private.
Circor International has agreed to be acquired by KKR in a $1.6 billion deal. This will see the investment firm pay $49 per share in cash for CIR stock. That represents a 55% premium to the stock’s closing price on Friday.
The Circor International board of directors has given its unanimous support to the deal with KKR. It’s also recommending that investors in CIR stock vote in favor of the acquisition. If that happens and regulators approve, the deal should close in the fourth quarter of 2023.
Tony Najjar, president and CEO of Circor International, said the following about the agreement:
“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.”
What This Means for CIR Stock
If approvals go well and the deal closes later this year, shares of CIR stock will cease to trade publicly. That means investors holding the stock at the time of the deal closing will receive $49 per share for their stake in the company.
Today’s news also brings with it heavy trading of CIR stock. As of this writing, more than 3 million shares have been traded. For the record, the company’s daily average trading volume is about 129,000 shares.
CIR stock is up 50.1% as of Monday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.