M&A: DJO sells, Aeroflow buys

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Tuesday, November 27, 2018

ANNAPOLIS, Md. – Colfax Corp. has entered into a definitive agreement to buy DJO Global from an investment group led by private equity firm Blackstone for $3.15 billion in cash.

Colfax provides air and gas handling and fabrication technology products and services to customers around the world, primarily under the Howden and ESAB brands.

“The acquisition of DJO is a compelling next step in the strategic evolutions of Colfax that creates a new growth platform in the high-margin orthopedic solutions market,” said Matt Trerotola, president and CEO of Colfax. “We see significant opportunities to apply our proven Colfax Business System across DJO to create a continuous improvement culture, further improve productivity and margins, and accelerate innovation and new product development.”

Upon closing, DJO Global will operate as a new segment within Colfax and be led by Brady Shirley, DJO president and CEO, who will report directly to Trerotola.

For DJO, the deal boosts the company’s potential operational performance and growth, says Shirley.

“Colfax team’s operating expertise across a broad array of businesses makes them the ideal partner to help us build on our momentum, drive new levels of innovation and continue to deliver outstanding service to our customers,” he said.

Colfax, which trades on the NYSE under the ticker symbol CFX, expects to finance the deal with about $100 million in cash from its balance sheet, proceeds from credit facilities and a contemplated debt offering, and $500 million to $700 million from a contemplated offering of equity or equity linked securities.

The deal is expected to close in the first quarter of 2019.

Aeroflow expands resupply biz

ASHEVILLE, N.C. – Aeroflow Healthcare has acquired Integrity Medical’s CPAP resupply business. “We look forward to providing exceptional care for new and existing PAP patients in Georgia and are happy to add resources to Integrity Medical to help refocus its missions,” said Andrew Amoth, corporate development manager. Augusta, Ga.-based Integrity Medical also provides products in the following categories: lift chairs, respiratory, walking aids, bathroom safety, seating and positioning, and patient room. Aeroflow has also acquired HealthCare Plus’ resupply business for CPAP, urology, incontinence and wound care. Polson, Mont.-based HealthCare Plus will focus on its pharmacy business. Earlier this year, Aeroflow bought the CPAP resupply business of Vernon, Conn.-based Med-Caire.