UPDATE 2-GDI mulls leveraged recap as auction struggles-sources
* KKR prepares to submit final bid by Feb.21 -sources
* Advent out, TPG-Onex pair lags on due diligence -sources
* Company exploring leveraged recap, spoke to CCMP -sources
By Greg Roumeliotis and Soyoung Kim
SAN FRANCISCO/NEW YORK, Feb 11 (Reuters) - Gardner Denver Inc is considering leveraged recapitalization as an alternative, as efforts to sell itself to private equity snag over price and the business outlook declines for the industrial machinery maker, people familiar with the matter said on Monday.
Buyout firm KKR Co & LP is preparing to submit a final takeover offer for Gardner Denver by the deadline of Feb. 21, but a few other private equity bidders have either dropped out or are no longer seriously pursuing a deal, the people said.
Buyout firm Advent International has put its pencils down, while the partnership of TPG Capital LP and Onex Corp has not done enough due diligence that would allow it to make a final offer next week, the people said.
With the auction showing signs of weakening, Gardner Denver is looking at alternative transactions and has held talks with buyout firm CCMP Capital about investing as part of a leveraged recapitalization, they said. While no final decision has been made, CCMP is unlikely to move forward with such a deal, one of the people said.
There is also growing skepticism among private equity firms about whether Gardner Denver is worth more than where its shares trade currently, they added. The stock fell 2.3 percent to $68.83 on the New York Stock Exchange, valuing the company at slightly under $3.5 billion. Continued...