Colfax Corp (NYSE:CFX), US fluid handling products supplier, announced on Tuesday it had bought a 91% stake in Peru-based welding equipment manufacturer Soldex SA, valuing the business at $235m (€187m), including assumed debt.
The interest was purchased from local securities and real estate investment company Inversiones Breca SA and affiliates.
The deal is expected to foster Colfax’s standing in South America given the target company’s strong position along the Pacific coast, the buyer said.
The acquisition is also seen to give Colfax’s ESAB division, which focuses on production of equipment and filler metals for all types of welding and cutting applications, a top position on the continent and to further facilitate the company’s access to the energy and natural resources sectors.
The move fits into Colfax’s strategy to expand its operations in emerging markets and in sectors with the potential to grow in the long term, CEO Steve Simms said.
Colfax, headquartered in Fulton, Maryland, manufactures and sells gas-and fluid-handling and fabrication technology products and services to commercial and governmental clients worldwide. In January, the company wrapped up the acquisition of UK engineering company Charter International (LON:CHTR), paying £1.53bn ($2.4bn/€1.9bn).