U.S. Colfax agrees to pay $3 bln for medical device company DJO Global

U.S.-based welding, air and gas handling equipment maker Colfax Corp. is getting closer to pay $3 billion in cash for medical device company DJO Global Inc. from private equity funds managed by Blackstone.

Colfax said that the move is a compelling next step in its strategic evolution that creates a new growth platform in the high-margin orthopaedic solutions market and reflects its strategic intent to diversify its portfolio and end-market exposure, reduce cyclicality, and increase profitability.

The company expects significant opportunities to apply its business system across DJO to create a continuous improvement culture, further improve productivity and margins, and accelerate innovation, new product development and expects to build its new medical technology platform with additional investment.

Upon closing of the transaction, DJO Global will operate as a new segment within Colfax. DJO booked $1.2 billion in revenue.