Colfax Corporation ("Colfax") (NYSE: CFX), a leading global manufacturer of gas- and fluid-handling and fabrication technology products, today announced that it has entered into a binding agreement to acquire CKD Kompresory a.s., based in Prague, Czech Republic, from CKD Group. The transaction values CKD Kompresory at approximately $57 million, including the assumption of debt, and is expected to close in the fourth quarter following the fulfillment of certain conditions. Upon closing, the business will join the Howden operations and be renamed Howden CKD Compressors s.r.o.
CKD Kompresory is a leading supplier of multi-stage centrifugal compressors to the oil & gas, petrochemical, power and steel industries. This acquisition will build on Howden's strength in reciprocating, screw and turbo compressors, broadening and enhancing the product portfolio and further expanding the business' geographic footprint in Russia and Eastern Europe. In 2012, CKD Kompresory had approximate revenues of $40 million and EBITDA of $6.5 million.
In making the announcement, Steve Simms, President and Chief Executive Officer of Colfax, stated, "With a history extending back nearly 150 years, CKD Kompresory is a wonderful brand with a great team and geographic footprint. This transaction will strengthen Howden's compressor business, and expand Colfax's exposure to end markets with exciting growth potential.
Mr. Simms continued, "We are pleased to announce another investment in the Howden business. A disciplined acquisition process, coupled with financial flexibility, is allowing us to continue executing on our stated bolt-on acquisition strategy."
Sona Vladarová, Vice-President and Chief Financial Officer of CKD Group, stated, "We are very pleased to have reached this agreement with as strong and reputable a partner as Colfax. We believe Howden's technical expertise, market knowledge, resources and competencies will enable CKD Kompresory to accomplish even more than it has thus far. We also believe there is significant potential for further business cooperation between Colfax and CKD Group. This divestiture fits CKD Group's long-term strategy to focus on its EPC business in the power sector, oil & gas and infrastructure."