Colfax to buy DJO Global from Blackstone for $3.15 billion in cash

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Diversified technology company Colfax Corp. said Monday it has entered an agreement to acquire DJO Global Inc., a maker of orthopedic devices, from Blackstone for $3.15 billion in cash. The deal is expected to close in the first quarter of 2019 and to boost adjusted per-share earnings in the first full year after closing. It is expected to generate a tax benefit in the form of net operating loss carryforwards of $800 million. Colfax will finance the deal with about $100 million of cash, proceeds from credit facilities and a debt offering, along with $500 million to $700 million from equity or equity-linked securities. The deal "creates a new growth platform in the high-margin orthopedic solutions market," Chief Executive Matt Trerotola said in a statement. "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 healthcare." Colfax shares were not yet active premarket, but have fallen 29.4% in 2018, while the S&P 500 has gained 2.3%.