Shares of SPX Flow Inc. FLOW, -1.59% soared 24% toward record territory in premarket trading Monday, after the Ingersoll Rand Inc. IR, +0.06% confirmed that it made an all-cash buyout bid that values the industrial components maker and distributor at about $3.59 billion, but said the bid was rejected. Ingersoll Rand shares fell 1.4% ahead of the open. Ingersoll Rand said that on June 10, it made a bid to buy SPX Flow for $85 a share, which is 20.4% above the May 7 record closing price of $70.60. The company said that on June 21, SPX Flow rejected the bid, and declined its request to engage in talks. Ingersoll Rand said that came about a month after its $81.50-per-share buyout bid was rejected by SPX Flow. “While we had hoped to complete a transaction privately, we remain committed to engaging with SPX Flow on a friendly basis and in a constructive and collaborative manner,” Ingersoll Rand Chief Executive Vicente Reynal said. “To be clear, while we believe that SPX Flow is a strong strategic fit with Ingersoll Rand, we will be disciplined in our approach and not stray from our demonstrated commitment to pursuing accretive transactions that present significant, additional post-synergy value creation opportunities.” SPX Flow’s stock has gained 7.1% year to date through Friday while Ingersoll Rand shares have edged up 5.7% and the S&P 500 SPX, -0.75% has advanced 15.2%.
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