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5/16, 2:00 PM (Source: TeleTrader)
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Colfax-2.23%

25.39
Chart for: Colfax Corporation

Colfax to sell air and gas unit to KPS Capital for $1.8B

Colfax Corp. signed a definitive agreement to sell its air and gas handling business to KPS Capital Partners LP for $1.80 billion, the company announced on Thursday.

The transaction, which is expected to close in the second half of 2019, includes $1.66 billion in cash consideration and $0.14 billion in assumed liabilities and minority interest. Califax said its business had approximately $90 million of segment operating profit and $200 million of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the twelve months ended March 29, 2019.

"This completes the strategic shift of our portfolio to diversify end-market exposure, reduce cyclicality, and increase profitability. This transaction will position us to achieve our leverage target and pursue strategic bolt-on acquisitions in our Medical Technology and Fabrication Technology segments," Colfax CEO Matt Trerotola said in the press release.

Breaking the News / MD