The investment firm KKR Corp. [KKR] on Monday said it has agreed to acquire flow control products supplier CIRCOR International [CIR] for $1.6 billion in cash.
The acquisition has been approved by CIRCOR’s board and still requires approvals by the company’s shareholders and regulators. CIRCOR expects the acquisition to close in the fourth quarter, after which time the company will be privately held.
CIRCOR had $787 million in sales in 2022, with $283 million from its work with the aerospace and defense industry. Industrial work makes up most of the Massachusetts-based company’s revenue.
“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,” Tony Najjar, president and CEO of CIRCOR, said in a statement.
KKR said the pending acquisition builds on other recent investments in flow control technologies and aerospace and defense suppliers including Ingersoll Rand, Flow Control Group, Hensoldt, and Novaria Group.
Evercore and J.P. Morgan are serving as financial advisers to CIRCOR and Citi is advising KKR.