Colfax to Acquire DJO Global for $3.15b

Colfax Corporation, a $3.6b diversified maker of fluid handling and other engineered products is acquiring DJO Global Inc, a leading maker of orthopedic bracing and other non-invasive rehab devcies. The deal diversifies CFX' revenue streams and end-market exposure, reduces cyclicality, weights healthcare and creates a new growth platform for CFX. DJO’s primary offerings are: Aircast, DonJoy, and ProCare. It partners with American Association of Hip and Knee Surgeons, American Orthopaedic Foot & Ankle Society and many sports teams. Deal price - $3.15b on revenue of $1.2b and EBITDA of $260.20. But DJO recently posted net losses of -$29.5m for Q3 2018. Colfax expects the deal to add to its adjusted EPS in the first full year after closing, plus tax benefits from DJO’s roughly $800m in net operating loss carry-forwards. DJO is owned by an equity consortium headed by by Blackrock.

Keywords: Healthcare Investment Banking, Healthcare M&A, Healthcare mergers