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Circor to acquire Colfax’S fluid handling business from Colfax Corp for $855 million in cash and stock


Monday, 25 Sep 2017 06:30am EDT 

Sept 25 (Reuters) - Circor International Inc :Circor to acquire Colfax’S fluid handling business from Colfax corporation for $855 million in cash and stock.Circor International Inc - ‍deal expected to be accretive to earnings and margins within first year​.Circor International - combination results in estimated pro forma combined revenues of about $1.1 billion based on trailing 12 month results as of June 2017.Circor International Inc - ‍Circor also reaffirmed its Q3 2017 net revenue and adjusted EPS guidance originally announced on July 28, 2017​.Circor International Inc- upon closing of transaction, Colfax will own approximately 16% of Circor.Q3 earnings per share view $0.43, revenue view $155.5 million -- Thomson Reuters I/B/E/S.Circor International Inc - ‍transaction is expected to generate a return on invested capital that exceeds Circor's cost of capital by year four​.Circor International Inc- Colfax has agreed to certain restrictions on transfer of shares, including a six month lock-up.Circor International- after close of deal , CFH portfolio of brands to remain in place & majority of business to operate as separate segment within co.Circor International Inc - Circor expects to realize cost synergies of $23 million by fourth year following transaction close.Circor International Inc - company expects to incur approximately $10 million in one-time costs to achieve synergies.