Circor pays $855MM for Colfax’s fluid handling business
Circor International Inc. (NYSE: CIR) has agreed to purchase Colfax Corp.’s (NYSE: CFX) fluid handling business for $855 million in cash and stock. The acquisition is intended to help build out Cicor’s product line and services involving the flow control of fluids and help it achieve greater efficiencies.
Dating back to 1860, Colfax Fluid Handling has manufactured screw pumps for demanding service applications in commercial marine, defense, oil and gas and the industrial sector in general. The Monroe, North Carolina-based target supplies a portfolio of fluid handling products to support gas compression, chemical processing, power generation and wastewater operations. Cicor expects the purchase to yield savings from greater supply chain efficiencies, cost reductions and manufacturing rationalization.
“CFH’s differentiated product offering enhances our ability to provide critical flow control solutions, and expands our presence into new markets,” states Circor CEO Scott Buckhout.
Based in Burlington, Massachusetts, Circor distributes valves and sub-systems used in the energy, aerospace and industrial markets. Circor operates from two divisions: energy and advanced flow solutions. With products sold to more than 950 distributors worldwide, the buyer has manufacturing facilities located in the U.S., Canada, Western Europe, Morocco, and India. For the acquisition, Circor will pay $542 million in cash, issue nearly 3.3 million new shares valuing approximately $163 million, and assume global pension plans with a liability of $150 million in pre-tax dollars.
The middle market has been swarming with deal activity across the industrials and manufacturing sectors. Related deals include: Colfax subsidiary Esab Welding and Cutting’s purchase of gas welding tool maker Arc Machines Inc from Marwit Capital; Tech Air’s, backed by CI Capital Partners, completed deal to buy two welding suppliers; Berkshire Hathaway Inc.’s purchase of Wilhelm Schulz GmbH; Graycliff Partners’ backing sheet maker A-1 Machine Manufacturing Inc.; Liberty Hall Capital Partners’ acquisition of aerospace parts supplier ZTM Inc.; and LFM Capital’s investment in hydraulic clamps maker Vektek LLC.