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Gardner Denver, Inc. (GDI) Set to Acquire CompAir

Gardner Denver, Inc. (GDI) is a global manufacturer of highly engineered reciprocating, rotary and van compressors, liquid ring pumps and blowers for various industrial and transportation applications, pumps used in the petroleum and industrial markets, and other fluid transfer equipment serving chemical, petroleum and food industries. The company’s operations are organized into two reportable segments: Compressor and Vacuum Products, and Fluid Transfer Products.

In the Fluid Transfer Products segment, the company designs, manufacturers, markets and services a diverse group of pumps, water jetting systems and related aftermarket parts used in oil and natural gas well drilling. In the Compressor and Vacuum Products segment, the company designs, manufactures, markets and services such industrial and commercial applications as rotary screw, reciprocating, and sliding van and centrifugal compressors.

Gardner Denver has recently entered into separate share purchase agreements with the holders of 100 percent of the outstanding shares of CompAir Holdings Limited, a manufacturer of compressed air and gas solutions. CompAir, headquartered in Redditch, United Kingdom, operates through three business divisions that manufacture compressors used in oil and gas exploration, mining construction, power plants, mass transit, and in naval, marine and defense market segments. CompAir operates by a network of wholly-owned sales offices, local sales and service branches, and a number of independent distributors and agents worldwide, with locations in Simmern, Germany; Ipswich and Redditch, the UK; Ocala, Florida; and Shanghai, China.

The acquisition places a total enterprise value of the business at GBP 197.5 million (approximately $395M US) to be paid through a combination of cash and the assumption of existing CompAir debt. To finance the purchase, the company will use excess available cash and new syndicated credit facilities. The transaction is subject to certain closing conditions and is not conditioned upon completion of financing.

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