Circor shares surged more than +40% Tuesday, following news of The Crane Company showing interest in the company.
The Crane has offered to buy the smaller industrial company for around $1.7 billion of enterprise value. That includes $45 per share in cash – which represents a +47% premium over Circor stock’s Monday closing price of $30.66.
According to Crane, it had earlier proposed the all-cash deal to Circor President and CEO Scott Buckhout on April 30, but got rejected by the company's board. But now, Crane has brought out its latest offer to Circor shareholders as well, hoping that they would convey their thoughts on it directly to the Circor Board (as indicated by Max Mitchell, Crane's president and CEO, in a statement).
Crane has Wells Fargo Securities as its financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisor foe the deal.