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Lone Star Weighs Offer for Industrial Pump Maker SPX Flow

Lone Star Weighs Offer for Industrial Pump Maker SPX Flow

Lone Star Funds is considering a bid for industrial pump and valve maker SPX Flow Inc., according to people with knowledge of the matter.

The Dallas-based firm is preparing to submit a bid this month for SPX Flow, said the people, who asked not to be identified because they weren’t authorized to speak publicly. Other bidders could emerge, they added. SPX Flow is currently running a strategic review of the company, working with Morgan Stanley, after rejecting in July a $3.59 billion takeover bid by Ingersoll Rand Inc.

Lone Star hasn’t made a final decision on bidding for the Charlotte, North Carolina-based company and its plans could change, the people said. Ingersoll Rand said in a Sept. 1 statement that it wouldn’t participate in the bidding.

Representatives for SPX Flow, Lone Star and Morgan Stanley declined to comment.

SPX Flow rose 1.4% to close at $81.75 in New York on Friday, giving the company a market value of about $3.4 billion. 

A deal would add to a surge in industrial M&A, pending and completed transactions announced in 2021 have reached a combined $634 billion, already an all-time high for a year with more than a month left to go, according to data compiled by Bloomberg. Recent transactions include Emerson Electric Co.’s deal for a majority stake in Aspen Technology Co. and Lockheed Martin’s proposed takeover of Aerojet Rocketdyne Holding’s Inc. 

SPX Flow, led by Chief Executive Officer Marc Michael, makes products including air and gas-treatment equipment and pumps under brands such as Deltech and Johnson Pump, according to its website. When announcing the review, the company said it would consider a sale or merger alongside its existing standalone strategy.

©2021 Bloomberg L.P.