Colfax to spin off orthopedics, industrial businesses

Alan Condon -   Print  |

Industrial equipment manufacturer Colfax Corp. plans to split its industrial and medical device businesses into two publicly traded companies.

DJO, which Colfax acquired for $3.2 billion in 2019, is Colfax's medical device segment, and ESAB, which manufactures welding and cutting equipment, represents the company's fabrication technology business.

DJO manufacturers devices for joint reconstruction, vascular health and pain management. In the fourth quarter, DJO reported net sales of $309.5 million.

"Now is the right time to build on the momentum in both businesses and enable each to better capitalize on its distinct opportunities," Matt Trerotola, Colfax president and CEO said in a March 4 news release. "We believe a separation will better position each business to execute tailored strategies to deliver above-market growth, margin expansion and strong, consistent free cash flow."

Mr. Trerotola will lead the medical device company, which will include Colfax's current medical technology, expected to post revenue of about $1.4 billion in 2021.

The device company will be renamed before the split to reflect its strategic focus. It will be headquartered in Wilmington, Del., with a significant presence in Dallas.

The separation, set for the first quarter of 2022, is expected to be tax-free to shareholders.  

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