SPX Flow to be acquired by Lone Star for USD3.8 billion

SPX Flow announced it entered into an agreement to be acquired by an affiliate of Lone Star Funds (“Lone Star”) in an all-cash transaction valued at USD3.8 billion, including the assumption of debt.
The purchase price represents a premium of nearly 40% over SPX Flow’s closing stock price on July 16, 2021, the last trading day prior to the publication of an article in the July 19, 2021, edition of The Wall Street Journal stating that the Company received an unsolicited purchase offer.
“We are pleased to have reached this agreement with Lone Star, which is the result of a comprehensive review of alternatives, including a robust sale process, conducted by our Board in consultation with independent advisors,” said Robert F. Hull, Jr., Chairman of the SPX Flow Board of Directors. “As part of the process, SPX Flow held discussions with multiple strategic and financial parties and evaluated the transaction against the Company’s standalone prospects, performance and outlook. We believe this transaction is the right path forward and achieves our goal of maximizing value for SPX Flow shareholders.”
“SPX Flow has transformed its business and made important progress executing against our strategic plans, and we believe this transaction with Lone Star is an exciting culmination of those efforts for our shareholders,” said Marc Michael, SPX Flow President and CEO. “In Lone Star, we have a partner that brings additional perspective and expertise to support the continued implementation of our strategic initiatives as we deliver reliable outcomes for customers and provide them the high-quality products and services they expect from us. This transaction is a testament to the achievements of our employees, and I would like to thank them for all they do to make SPX Flow the premier process solutions company. We look forward to working with Lone Star to complete the transaction and delivering significant, immediate and certain value to our shareholders.”
“We are excited about the opportunity to partner with SPX Flow,” said Donald Quintin, President, Lone Star Opportunity Funds. “This acquisition is consistent with Lone Star’s strategy to invest in businesses with substantial runway for growth. We have great respect for SPX Flow’s talented employees and their commitment to innovation and serving customers. We look forward to working with Marc and the entire team to help advance SPX Flow’s strategy and capture the opportunities ahead.”