Colfax Corp (NYSE:CFX) is reportedly nearing a deal to sell its air and gas unit to KPS Capital Partners.
The sale would help Colfax pay down debt following its $3.15 billion acquisition in February of medical devices maker DJO Global Inc from buyout firm Blackstone Group LP. It underscores its decision to focus on high-margin and less cyclical businesses.
The company, based in Annapolis Junction, Maryland, reported last week a net loss from continuing operations of $(49) million or $(0.36) per diluted share, compared to net income of $0.22 per diluted share in the prior-year quarter.
In February 2019, Colfax completed its acquisition of DJO Global, Inc., the March results of which are reported as the Company’s new Medical Technology segment. DJO is a global leader in orthopedic solutions, providing orthopedic devices, software and services spanning the full continuum of patient care, from injury prevention to rehabilitation.
First-quarter 2019 net sales of $1,008 million were 14% higher than the comparable period of 2018. Excluding acquisitions and foreign currency translation effects, Fabrication Technology segment sales grew 5% from improved pricing, and Air & Gas Handling segment sales decreased 3% as expected. The new Medical Technology segment posted sales of $124 million in the month of March.
First-quarter 2019 Air & Gas Handling orders increased 18% to $384 million compared to the prior year period.
First-quarter adjusted EBITDA was $127 million as compared with $91 million in the prior year quarter, with $26 million of the increase from the Medical Technology segment.
CFX shares fell in price 34 cents, or 1.3%, to $26.70 early Monday morning
