One of the largest purchases of any company in the last few weeks was announced today by Maryland-Based Colfax Corporation.
Colfax Corporation (NYSE: CFX) has made a global purchase by acquiring Ireland-based Charter International plc (LON: CHTR, LSE: CHTR).
As recently reported, rumors circled about a possible merger agreement between the two companies, until Colfax with headquarters in Fulton, released a written announcement confirming the two companies were indeed in discussions and an offer was on the table.
Charter will be purchased for an $14.45 per share or approximately 910 pence in a mix of cash and Colfax corporation stock. Colfax closed at $23.04 a share September 9, 2011. Charter Board of Directors collectively recommended the acquisition.
"Charter International, with its global brands, is an excellent strategic fit that will significantly enhance our position in emerging markets, create an even balance of short- and long-cycle businesses and grow our aftermarket revenues," stated Clay H. Kiefaber, Colfax President and Chief Executive Officer. "Howden will be a great complement to our existing specialty fluid handling business and ESAB will be the nucleus of a new growth platform. In addition, we believe the application of the Colfax Business System will drive meaningful operational improvements."
Colfax says Charter will increase its global footprint. Charter owns Howden, a subsidiary focused on air and gas handling which will compliment Colfax's fluid handling business.