Crane Co. CR announced Tuesday that it has submitted a proposal to the board of directors of CIRCOR International, Inc. CIR to acquire Circor for $45 per share in cash.
The proposal represents a 47-percent premium over Monday's closing price and a 37- and 51-percent premium over the three- and six-month volume-weighted average share price, respectively.
The deal represents an enterprise value for Circor of about $1.7 billion at a multiple of approximately 13.5x the last 12-month adjusted EBITDA, according to Crane.
"Our proposal provides CIRCOR shareholders with attractive value and certainty compared to the continued uncertainty surrounding CIRCOR's plans to improve operating performance,” Crane CEO Max Mitchell said in a statement.
“Based on CIRCOR's history of underperformance and inability to meet its own financial targets, we believe CIRCOR's standalone plan is unlikely to generate value comparable to what we are proposing."
Crane has retained Wells Fargo Securities as its financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisor.
Crane shares were down 3.81 percent at $81.63 at the time of publication Tuesday, while Circor shares were rallying by 41.23 percent to $43.30.
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