Colfax's (CFX) Unit Closes Buyout of Trilliant Surgical

Zacks Equity Research

Colfax Corporation’s CFX business unit — DJO, LLC — recently completed the buyout of Trilliant Surgical. However, the financial terms of the transaction were kept under wraps.

Notably, Colfax’s shares were up 1.3% yesterday to eventually close the trading session at $40.11.

Inside the Headlines

Based in Houston, TX, Trilliant Surgical is an orthopedic foot and ankle implant provider. The company offers more than 15 product lines, of which many products are patented. It is well recognised for providing the novel Arsenal Foot Plating System.

Trilliant Surgical is believed to be a strategic fit for DJO. Its market leading brands and strong innovation capabilities will enable DJO to offer comprehensive foot and ankle solutions to a broad customer base. Notably, the Trilliant Surgical’s buyout is anticipated to augment DJO’s buyout of Scandinavian Total Ankle Replacement (STAR) system (November 2020).

Notable Buyouts

Colfax believes in acquiring businesses for expanding its business and product offerings. For instance, along with the buyout of STAR system from Stryker Corporation SYK, DJO also acquired Stryker’s TACTYS and Silicone, Surface Replacement product line. This is likely to expand its reconstructive product offerings through its entry into the foot and ankle market. Further, in December 2020, the company closed the acquisition of LiteCure, which is likely to create strong growth opportunities for DJO in the physical therapy and rehabilitation market.

Zacks Rank, Price Performance and Estimate Revisions

Colfax, with approximately $4.8 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is likely to benefit from its focus on product innovation, solid business portfolio and a healthy business system in the quarters ahead. However, uncertainties related to the coronavirus pandemic might affect its performance.

The Zacks Consensus Estimate for Colfax’s earnings is pegged at $1.38 for 2020, up 0.7% from the 60-day-ago figure.

The company’s shares have gained 24.5% compared with 11.2% growth recorded by the industry in the past three months.

Stocks to Consider

A couple of better-ranked stocks from the same space are Graham Corporation GHM and Dover Corporation DOV. While Graham currently sports a Zacks Rank #1 (Strong Buy), Dover carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Graham delivered a positive earnings surprise of 6.79%, on average, in the trailing four quarters.

Dover delivered a positive earnings surprise of 18.1%, on average, in the trailing four quarters.

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