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Monday, February 11, 2013

GDI considers leveraged recap as auction struggles-sources, (NYSE: GDI)

Gardner Denver Inc is considering leveraged recapitalization as an alternative, as efforts to sell itself to private equity snag over price and the business outlook declines for the industrial machinery maker, people familiar with the matter said on Monday.Buyout firm KKR Co & LP is preparing to submit a final takeover offer for Gardner Denver by the deadline of Feb. 21, but a few other private equity bidders have either dropped out or are no longer seriously pursuing a deal, the people said.Buyout firm Advent International has put its pencils down, while the partnership of TPG Capital LP and Onex Corp has not done enough due diligence that would allow it to make a final offer next week, the people said.With the auction showing signs of weakening, Gardner Denver is looking at alternative transactions and has held talks with takeover firm CCMP Capital about investing as part of a leveraged recapitalization, they said. While no final decision has been made, CCMP is unlikely to move forward with such a deal, one of the people said.

Gardner Denver, Inc. (Gardner Denver) designs, manufactures and markets engineered industrial machinery and related parts and services. Shares of GDI fell by 2.33% or $-1.64/share to $68.83. In the past year, the shares have traded as low as $45.54 and as high as $76.57. On average, 950305 shares of GDI exchange hands on a given day and today's volume is recorded at 3425353.