CIRCOR To Acquire Colfax Fluid Handling In $855 Mln Deal - Quick Facts

(RTTNews) - CIRCOR International, Inc. (CIR) announced a definitive agreement to acquire Colfax Fluid Handling from Colfax Corp. (CFX) for approximately $855 million including cash, newly issued CIRCOR shares, and the assumption of pension plan liabilities linked to the CFH business. CIRCOR will pay $542 million in cash, issue approximately 3.3 million new CIRCOR shares to Colfax representing approximately $163 million in value, and assume global pension plans with a net liability of $150 million on a pre-tax basis. Upon closing of the transaction, Colfax will own approximately 16% of CIRCOR.

Colfax Fluid Handling is a supplier of screw pumps for severe service applications across a range of markets including general industry, commercial marine, defense, and oil & gas.

On a pro forma basis, the combined company had approximately $1.1 billion in revenue based on the trailing 12 months ended June 2017. CIRCOR expects the acquisition to be accretive to cash EPS and adjusted operating margins in the first year following close, with additional margin expansion and long-term EPS growth going forward as synergies are realized.

CIRCOR also reaffirmed its third-quarter 2017 net revenue and adjusted EPS guidance. The company will announce third quarter results on October 27, 2017.