Industrial equipment maker Colfax Corp said on Monday it would acquire DJO Global Inc from Blackstone Group for $3.15 billion in cash, as it diversifies into selling medical products such as shoulder implants and knee braces.
Colfax also said it was exploring strategic options for its air and gas handling business, which includes heat exchangers and gas compressors, reports Reuters.
The DJO deal will add to Colfax’s adjusted profit in the first full year after the deal closes in the first quarter of 2019.
Colfax will fund the deal with about $100 million in cash, proceeds from credit facilities and debt offering, and $500 million to $700 million from an offering of equity or equity-linked securities, the company said.
J.P. Morgan is the financial adviser of Colfax. Goldman Sachs & Co LLC, Credit Suisse and Wells Fargo Securities LLC are advising DJO.
