Circor International said on Thursday that KKR & Co had raised its offer for the industrial machinery maker by $5 to $56 per share in cash, as the investment firm looks to fend off a rival bid from Arcline Investment Management.

The new offer includes a ticking fee of $1 per share if the deal does not close by October, with the actual amount accruing on a prorated daily basis between November until December.

Arcline on Wednesday proposed to buy Circor for $1.8 billion including debt, topping KKR's rival bid of $1.7 billion. KKR's initial offer was $1.6 billion.

Arcline did not immediately respond to a request for comment on KKR's revised bid. The company had given Circor until Thursday evening to respond.

Circor makes flow-control products that makes help manage and control liquids and gases using equipment or services such as pumps, valves, compressors and meters.

KKR is no stranger to the sector, having bought Gardner Denver for $3.9 billion in 2013, taking it public in 2017 and merging it with Ingersoll-Rand Inc's industrial division in 2020 to create a company valued at the time at $15 billion. KKR has since cashed out from that investment.

Evercore, J.P. Morgan Securities LLC and Ropes & Gray LLP served as advisers to Circor.

(Reporting by Nathan Gomes in Bengaluru; Editing by Sriraj Kalluvila)