), a manufacturing and engineering company, recently announced to
have signed an agreement to acquire the Global Infrastructure and
Industry (GII) business of Flakt Woods Group. The completion is
subject to closing conditions.
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Assuming debt, Colfax has valued GII at €193 million. The
acquired business has strong international presence and is well
known as a supplier of industrial fans and related products.
Acquisition of GII will strengthen the company's Howden business
through its broad product portfolio and large customer base and
will add revenue generation capacity of approximately $225
Colfax's Howden was founded in 1854 and currently provides
precision air and gas handling equipment for challenging
applications. Its products are supplied to various industries
including power generation, oil and gas, petrochemical, mining
Colfax, over time, has made a number of strategic acquisitions
that proved beneficial for the company. Among these, the
acquisition of Charter in January 2012 deserves special mention.
The transaction added world class welding, cutting and automation
and air and gas handling business to Colfax's portfolio and
enabled the company to grow its businesses in emerging markets.
Post the Charter acquisition, Colfax made three more strategic
acquisitions that helped the company expand its operations. This
included acquisition of majority ownership in CJSC Sibes in May
2012, acquisition of Co-Vent Group Inc. in September 2012, and
91% stake in Soldex S.A. in October 2012.
Besides these acquisitions, a little glimpse into the second
quarter 2013 results shows that the company is financially sound
for more accretive acquisitions going forward.
Exiting the second quarter of 2013, Colfax's cash and cash
equivalents stood at $587.9 million, more than double on a
sequential basis. Cash generated from operating activities were
$99.1 million, signifying a major improvement from cash use of
$13.4 million in the first quarter 2013.
Colfax currently has a market capitalization of $5.5 billion and
holds a Zacks Rank #3 (Hold). Other companies to look out for are
), each carrying a Zacks Rank #1 (Strong Buy) while
DXP Enterprises, Inc.
) holds a Zacks Rank #2 (Buy).