Timothy W. Sullivan Appointed President & Chief Executive Officer
WAYNE, Pa. & NEW YORK--(BUSINESS WIRE)--
Gardner Denver, Inc. (NYSE: GDI) and Kohlberg Kravis Roberts & Co. L.P.
(together with its affiliates, "KKR") today announced that the companies
have completed the transaction under which KKR acquired all of the
outstanding shares of Gardner Denver for approximately $3.9 billion,
including the assumption of debt.
KKR also announced today that Timothy W. Sullivan has been appointed as
President & Chief Executive Officer of Gardner Denver, effective
immediately. Michael M. Larsen has transitioned to the role of Interim
Vice President & Chief Financial Officer, effective immediately.
Pete Stavros, Member of KKR and head of the firm's Industrials
investment team, said: "We are excited about taking this next step in
the evolution of Gardner Denver. We would like to thank Michael for his
leadership through the transaction and for his contributions to the
organization more broadly. We would also like to welcome Tim Sullivan, a
world class executive with particular expertise in driving growth and
commercial excellence. Tim's 35-year track record speaks for itself and
his experience will be invaluable in accelerating the operating
initiatives already underway. We look forward to working with Tim and
all of Gardner Denver's employees to drive growth and deliver continued
success and value for all stakeholders."
"I am enthusiastic about leading Gardner Denver and I am confident in
the near- and long-term potential of the business," said Mr. Sullivan.
"Gardner Denver has a highly diversified business portfolio of
market-leading products and solutions, strong customer relationships and
a passionate team of highly talented employees. Under Michael's
leadership, the Company expanded its global footprint and leveraged its
best-in-class technologies to become a worldwide industry leader. I look
forward to working closely with the Board and leadership team to refine
the Company's strategy, enhance performance and build upon the Company's
positive momentum. I believe Gardner Denver is very well positioned to
capitalize on the many opportunities ahead."
As a result of the completion of the transaction, Gardner Denver common
stock will no longer be listed for trading on the New York Stock
Exchange, effective as of the close of trading today.
Timothy W. Sullivan
Mr. Sullivan, 60, spent 35 years at Bucyrus International Inc., one of
the world's largest manufacturers of mining machinery, most recently
serving as Chief Executive Officer and a member of the Board of
Directors until its sale to Caterpillar Inc. for $8.8 billion in July
2011. During Mr. Sullivan's tenure as President and Chief Executive
Officer of Bucyrus International Inc., its Adjusted EBITDA increased
from $49 million in 2004 to $736 million for the last twelve months
ended March 31, 2011, representing a compound annual growth rate of 54%.
Prior to his position as CEO, Mr. Sullivan held managerial roles of
increasing responsibility including Chief Operating Officer, Executive
Vice President of Marketing, Vice President of Marketing and Sales,
Director of Business Development, Director of Parts Sales and Subsidiary
Operations and Product Manager of Electric Mining Shovels and
International Sales.
About Gardner Denver
Gardner Denver, Inc., with 2012 revenues of approximately $2.4 billion,
is a leading worldwide manufacturer of highly engineered products,
including compressors, liquid ring pumps and blowers for various
industrial, medical, environmental, transportation and process
applications, pumps used in the petroleum and industrial market segments
and other fluid transfer equipment, such as loading arms and dry break
couplers, serving chemical, petroleum and food industries. Gardner
Denver's news releases are available by visiting the Investors section
on the Company's website (www.GardnerDenver.com).
About KKR
Founded in 1976 and led by Henry
Kravis and George
Roberts, KKR is a leading global investment firm with $83.5 billion
in assets under management as of June 30, 2013. With offices around the
world, KKR manages assets through a variety of investment funds and
accounts covering multiple asset classes. KKR seeks to create value by
bringing operational expertise to its portfolio companies and through
active oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with fund investors
through its client relationships and capital markets platform. KKR & Co.
L.P. is publicly traded on the New York Stock Exchange (KKR)
and KKR, as used in this release, includes its subsidiaries, their
managed investment funds and accounts, and/or their affiliated
investment vehicles, as appropriate. For additional information, please
visit KKR's website at www.kkr.com.
Forward-Looking Statements
All of the statements in this release, other than historical facts, are
forward-looking statements made in reliance upon the safe harbor of the
Private Securities Litigation Reform Act of 1995, including, without
limitation, the statements made concerning the Company's intent to
consummate a merger with an affiliate of KKR. As a general matter,
forward-looking statements are those focused upon anticipated events or
trends, expectations, and beliefs relating to matters that are not
historical in nature. Such forward-looking statements are subject to
uncertainties and factors relating to the Company's operations and
business environment, all of which are difficult to predict and many of
which are beyond the control of the Company. Among others, the following
uncertainties and other factors could cause actual results to differ
from those set forth in the forward-looking statements: (i) the risk
that the merger may not be consummated in a timely manner, if at all;
(ii) the risk that the definitive merger agreement may be terminated in
circumstances that require the Company to pay KKR a termination fee of
$103.4 million or reimbursement of their expenses of up to $10 million;
(iii) risks related to the diversion of management's attention from the
Company's ongoing business operations; (iv) risks regarding the failure
of the relevant KKR affiliate to obtain the necessary financing to
complete the merger; (v) the effect of the announcement of the merger on
the Company's business relationships (including, without limitation,
customers and suppliers), operating results and business generally; and
(vi) risks related to obtaining the requisite consents to the merger,
including, without limitation, the timing (including possible delays)
and receipt of regulatory approvals from various domestic and foreign
governmental entities (including any conditions, limitations or
restrictions placed on these approvals) and the risk that one or more
governmental entities may deny approval. Further risks that could cause
actual results to differ materially from those matters expressed in or
implied by such forward-looking statements are set forth under "Risk
Factors" in the Company's Form 10-K for the fiscal year ended December
31, 2012, and its subsequent quarterly reports on Form 10-Q. The Company
does not undertake, and hereby disclaims, any duty to update these
forward-looking statements, although its situation and circumstances may
change in the future.
Gardner Denver
Vikram U. Kini, 610-249-2009
VP,
Investor Relations
or
Joele Frank, Wilkinson, Brimmer, Katcher
Matthew
Sherman, Jennifer Beugelmans or Joseph Sala
212-355-4449
or
KKR
Kristi
Huller, 212-230-9722
Kristi.Huller@kkr.com
Source: Gardner Denver, Inc.
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