Alfa Laval raises its bid for Munters

Alfa Laval, the Swedish engineering group, has raised its offer for Munters, a Swedish manufacturer of pumps and heat-transfer products, in an attempt to trump a private equity offer for the company by Cidron, which is backed by private equity fund Nordic Capital VII Limited. The new bid is worth 5.55 billion Swedish crowns ($821.7 million) – more than Cidron’s previous offer of 5.4 billion crowns ($787 million). Alfa Laval said that the Munters board has decided to recommend that shareholders accept the offer.

(Reuters) – Sweden’s Alfa Laval on Friday raised its offer for Munters, trumping a rival bid by a private equity fund to take the lead in the bidding war for the Nordic engineering group. Alfa Laval said in a statement it was hiking its bid to 75 Swedish crowns per Munters share from 68 crowns, topping the 72 crowns offered earlier this week by Cidron, which is owned by private equity fund Nordic Capital VII Limited.

The new bid by Alfa Laval was worth 5.55 billion Swedish crowns ($821.7 million) and represented a premium of 3 percent over the Cidron offer, the maker of fluid-handling equipment, pumps and heat-transfer products said.

Alfa Laval said that Munters’ board had decided unanimously to recommend shareholders accept the offer.

Two major owners — AB Industrivarden and Latour — had agreed to accept the offer unless a competing bid emerged of at least 5 percent more than Alfa Laval’s improved figure, it added.

“Alfa Laval and Munters are two Swedish innovative companies. Through Alfa Laval’s industrial structure and geographical presence, the right platform is created to further develop Munters’ market position,” Alfa Laval Chief Executive Lars Renstrom said.

(Reporting by Niklas Pollard; Editing by Mike Nesbit)