Colfax Corporation (NYSE: CFX) which recently moved its corporate headquarters from the Richmond, Va area to Fulton, Md in Howard County, said it has confirmed rumors that it has been in talks with Charter International plc (LSE: CHTR) for a possible acquisition.
The supplier of industrial products like pumps and valves, announced that it was in preliminary discussions to make an all-cash offer to buy Charter International.
Colfax said the purchase would be complimentary to its organic growth strategy and diversify its offerings. Charter International owns Howden, a provider of air and gas handling.
If approved by shareholders the acquisition would be financed through a combination of cash, debt and equity.
Colfax expects a significant double-digit increase in its earnings if the purchase is completed.