Colfax Corporation announced it has entered into a definitive agreement to acquire DJO Global Inc. from an investor group led by private equity funds managed by Blackstone for $3.15 billion in cash.
“Joining Colfax is a win for our customers and all DJO stakeholders,” Brady Shirley, DJO president and CEO, said in a company press release. “Colfax has the financial strength, experience and proven business system to support our operational performance and growth. Importantly, they are committed to our mission to get and keep people moving, and we are confident that the Colfax team’s operating expertise across a broad array of businesses makes them the ideal partner to help us build on our momentum, drive new levels of innovation and continue to deliver outstanding service to our customers.”
DJO Global will operate as a new segment within Colfax and will be led by Shirley, who will report directly to Matt Trerotola, president and CEO of Colfax, according to the release.
‘The acquisition of DJO is a compelling next step in the strategic evolution of Colfax that creates a new growth platform in the high-margin orthopedic solutions market,” Trerotola said in the release. “As a clear market leader in bracing and rehabilitation systems — with a track record of innovative new products, globally recognized brands and a diverse product portfolio — DJO is well-positioned to benefit from secular trends driven by changing demographics and increased preventive health care. This transaction reflects our strategic intent to diversify our portfolio and end-market exposure, reduce cyclicality and increase profitability. We see significant opportunities to apply our proven Colfax business system across DJO to create a continuous improvement culture, further improve productivity and margins, and accelerate innovation and new product development.”