SPX Closes in on $4.2 Billion Gardner Denver Deal

“NEW YORK (Reuters) – Industrial machinery maker SPX Corp is closing in on a roughly $4.2 billion deal to buy rival Gardner Denver Inc, as it makes progress in securing financing, a source familiar with the matter said on Tuesday.

A deal could value Wayne, Pennsylvania-based Gardner Denver at about $85 per share, the source said. Gardner Denver’s shares closed at $73.68 on Tuesday. SPX has a market value of $3.23 billion, compared to $3.62 billion for Gardner Denver.

SPX’s financial advisor Credit Suisse Group AG has been joined by Bank of America Corp andJPMorgan Chase & Co in efforts to raise debt for the deal, the source said on condition of anonymity because the talks are confidential.

A deal could value Wayne, Pennsylvania-based Gardner Denver at about nine times estimated 2012 earnings before earnings, tax, depreciation and amortization (EBITDA), the source said, cautioning details had yet to be finalized.

A deal announcement could come as early as this week though no final agreement has yet been reached and negotiations could still fall apart, the source added….”