Global private equity giant KKR, through its North America Fund XIII, will take industrial machinery maker CIRCOR International private in an all-cash transaction valued at approximately $1.6 billion, including debt.

KKR will acquire all outstanding shares of Massachusetts-based CIRCOR for $49 per share, representing a 55% premium to its closing stock price on June 2.

“Our agreement with KKR marks the successful culmination of a strategic review process conducted by the Board, supported by external advisors and the management team,” said Helmuth Ludwig, CIRCOR’s Board Chair.

KKR will support CIRCOR in expanding its equity ownership program to allow all employees to have the opportunity to participate in the ownership of the company.

CIRCOR specializes in manufacturing pump and valve systems for various industries, including industrial, aerospace, defense, and oil and gas. With approximately 3,100 employees, the company has established itself as a prominent player in the market.

In March last year, the company flagged irregularities in financial statements and hired an independent accounting firm, while also engaging in preliminary discussions with interested parties regarding a possible sale.

The transaction is expected to close in the fourth quarter.

Evercore, JP Morgan Securities LLC, and Ropes & Gray LLP are serving as advisors to CIRCOR. KKR is advised by Citi and Kirkland & Ellis LLP.

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