Colfax Corp (CFX.N), which makes pumps and other fluid-handling equipment, said it was in preliminary talks to purchase Charter International (CHTR.L), days after the British toolmaker opened its books to manufacturing takeover firm Melrose (NYN.L). "Charter's Howden division, which focuses on air and gas handling, would complement and extend Colfax's existing fluid handling business and its ESAB business, which provides welding and cutting solutions, would become the foundation of a new growth platform," Colfax said in a statement on Sunday. The company, which expects to fund any deal with a mix of balance sheet cash, new debt and equity, said the acquisition, if completed, would significantly add to earnings as well as achieve a double-digit return on invested capital within three to five years. Fulton, Maryland-based Colfax did not reveal how much it intends to pay. In a separate announcement, Charter said talks between the two companies were in an early stage.
Colfax Corporation (Colfax) is a global supplier of a range of fluid handling products, including pumps, fluid handling systems and controls and specialty valves. Shares of CFX fell by 5.88% or $-1.46/share to $23.39. In the past year, the shares have traded as low as $13.37 and as high as $28.75. On average, 206392 shares of CFX exchange hands on a given day and today's volume is recorded at 129464.
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