Colfax Corp. announced Thursday a deal to sell its air and gas handling business in a deal valued at $1.8 billion to KPS Capital Partners L.P. The stock rallied 2.7% in premarket trade. The deal, which is expected to close in the second half of this year, includes $1.66 billion in cash and $140 million in assumed liabilities and minority interest. “This completes the strategic shift of our portfolio to diversify end-market exposure, reduce cyclicality, and increase profitability,” said Colfax Chief Executive Matt Trerotola. “This transaction will position us to achieve our leverage target and pursue strategic bolt-on acquisitions in our Medical Technology and Fabrication Technology segments.” The stock has run up 27% year to date through Wednesday, while the S&P 500 has gained 14%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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