Colfax to Buy Irving Place’s Victor as BDT Converts StakeJ. Kyle O’Donnell and David Carey
Colfax Corp., a manufacturer of pumps and specialty valves, will acquire Irving Place Capital’s Victor Technologies Holdings Inc. for $947.3 million, including debt, to expand in welding and cutting equipment.
Irving Place will make about a 250 percent gain on its $170 million equity investment, said a person familiar with the matter, who asked not to be identified because details aren’t public. The New York-based firm led a $422 million leveraged buyout in 2010 of Thermadyne Holdings Corp., as St. Louis-based Victor was then known.
Colfax will finance the purchase with cash, borrowings and the issuance of 6.5 million shares, it said today in a statement. As part of the transaction, Colfax stakeholder BDT Capital Partners LLC converted its preferred stock to 12.2 million common shares.
“Victor provides an excellent strategic fit, extending our reach, as well as expanding and improving the breadth of our offering,” Colfax Chief Executive Officer Steven Simms said in the statement.
The acquisition complements Colfax’s ESAB business, one of the world’s largest manufacturers of welding and cutting equipment, the company said. It is expected to add to adjusted earnings per share immediately, Fulton, Maryland-based Colfax said. Victor had sales of about $500 million in 2013 on a pro forma basis.
Bank of America Corp., Citigroup Inc. and Deutsche Bank AG are acting as financial advisers to Colfax. Skadden, Arps, Slate, Meagher & Flom LLP is its legal adviser.
Colfax rose 1.6 percent to $65.02 at the close in New York.