- SPX FLOW, Inc. offers high-value process solutions for the industrial as well as nutrition and health markets.
- FLOW received a non-binding proposal from Ingersoll Rand Inc. to acquire the company for $85 per share in cash. The Board of Directors rejected the offer.
- I used approximately the same revenue and FCF reported by other analysts. I also assumed a WACC of 8%, and stable capital expenditures of $22-$30 million.
- If we assume a share count of 42 million, the equity valuation is $92.
- If I were a shareholder, I would not sell my shares at the current price of $70-$76. I would be waiting until the stock is worth $90-$92.
For further details see:
SPX FLOW Received An Offer Of $85, The Fair Value Is Higher