Surprising management change at Colfax!
What is this?
If you think this is a degradation think twice!
The division we are talking about is not just any division: It’s the ESAB division Colfax needs to integrate following the Charter International acquisition.
With this acquisition, the biggest in Colfax history so far, total revenue increased six fold from $700 million to $4 billion.
The ESAB division alone, now their biggest division, means $2 billion revenues and is much bigger than the whole Colfax has been before the acquisition.
Board member Steve Simms becomes the new CEO of the group.
This change underlines just how serious they are integrating Charter International, to realize synergies rapidly and to improve margins.
Will they be able to do that? Well, a first indication we’ll get when they release Q1 2012 results the 8th May.
But don’t forget: If any industrial company needs an experienced board and the right management team in place, Colfax already has it!
Is Colfax share price expensive right now? Difficult to say, it depends on the progress of the Charter integration. But look what insiders are doing: They are all buying shares!