Colfax To Sell Its Air And Gas Handling Business To KPS Capital In $1.8 Bln Deal

Diversified technology company Colfax Corp. (CFX) agreed Thursday to sell its Air and Gas Handling business to KPS Capital Partners, LP for enterprise value of $1.80 billion, including $1.66 billion in cash consideration and $0.14 billion in assumed liabilities and minority interest, subject to customary closing adjustments.

The Air & Gas Handling business had about $90 million of segment operating profit and $200 million of adjusted EBITDA in the twelve months ended March 29, 2019.

This transaction will position Colfax to achieve its leverage target and pursue strategic bolt-on acquisitions in its Medical Technology and Fabrication Technology segments.

“This completes the strategic shift of our portfolio to diversify end-market exposure, reduce cyclicality, and increase profitability,” said Matt Trerotola, President and Chief Executive Officer of Colfax.

Completion of the transaction is expected in the second half of 2019 and is subject to customary closing conditions and approvals. Colfax expects to report the Air & Gas Handling business as a discontinued operation in its future results.

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