FULTON, Md. (AP) -- Pump and valve maker Colfax Corp. said Monday it will buy Charter International PLC, which owns two engineering businesses, in a cash-and-stock deal valued at $2.4 billion.
Colfax, which is based in Fulton, Md., said it has agreed to pay 910 pence, or about $14.45 per share, for Dublin-based Charter. The offer includes 730 pence in cash and a portion of Colfax shares for each share of Charter.
Charter's Howden division focuses on air and gas handling, and its ESAB business focuses on welding and cutting.
Colfax CEO Clay H. Kiefaber said in a statement Howden will complement Colfax's specialty fluid handling business, and ESAB "will be the nucleus of a new growth platform."
Colfax also said the deal provides exposure to emerging markets and offers an additional growth platform in the fragmented welding and cutting industry.
Colfax said Charter's board has unanimously approved the deal. Colfax will finance it with a combination of cash, new bank debt and new equity.
It has received $2.1 billion in firm commitments for the bank debt from Deutsche Bank and HSBC.