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Sally Jones
Sally Jones
Articles (580) 

Giant GDI Add for Mario Gabelli – Merger in Progress

April 25, 2013 | About:

GAMCO Investors’ Chairman and Chief Executive Officer Mario Gabelli increased his position in the industrial machinery and equipment manufacturer Gardner Denver Inc. (NYSE:GDI) by 3,872.11% as of April 15, 2013. Gabelli now holds 1,215,467 shares of GDI, translating to a 5.7% stake in the company.

The current GDI share price is $74.98 with a 0% change from average. Gabelli bought shares in the price range of $74.98. His latest trade impacts his portfolio by 0.66%.

His holding history:

Founded in 1859, Gardner Denver Inc. is a global manufacturer of industrial equipment like compressors, blowers, pumps, loading arms and fuel systems. With a market cap of $3.7 billion, the company has 40 manufacturing facilities located in the Americas, EMEA and Asia Pacific, with offices in 33 different countries. In 2011 the company had revenue of $2.4 billion, with approximately 66% of that revenue generated from outside the U.S.

The company’s key ratios are a P/E of 14.1, a P/B of 2.5 and a P/S of 1.6.

Gabelli’s mega-add appears to be timed up with Gardner Denver’s merger agreement with KKR (Kohlberg Kravis Roberts & Co.) announced last month. With the transaction expected to close in the third quarter of 2013, KKR will acquire Gardner Denver in a deal valued at approximately $3.9 billion. Under the terms of the merger agreement, KKR will acquire all of the outstanding shares of Gardner Denver common stock for $76 per share in cash. This price represents a premium of approximately 39% to Gardner Denver’s share price on Oct. 24, 2012, the day before the company confirmed that it had begun to explore strategic alternatives, the company reported.

For the full year ended Dec. 31, 2012, Gardner Denver’s revenues were $2.356 billion compared with $2.371 billion in the same period of 2011. Adjusted operating income declined slightly to $404.3 million, compared with $414.3 million earned in the same period of 2011. Gardner Denver’s CEO Michael M. Larsen said, “During 2012, we successfully executed our strategy in the midst of a challenging economic environment and as a result we achieved record Adjusted DEPS for 2012 as well as strong cash flow from operations of $289 million. We took decisive actions to improve productivity and reduce structural costs and we were pleased with our strong finish for 2012 that positions us well for 2013 performance."

As of April 24, 2013, GAMCO Investors lists 792 stocks in a portfolio valued at $13.6 billion, with a quarter-over-quarter turnover at 6%.

For detailed insight into GAMCO Investors (GBL)

Here’s a look at Mario Gabelli’s recent top buys, sells and holdings:

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (6 votes)


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