Shares of Colfax Corp. (CFX, Financial), an industrial machinery company focused on infrastructure, increased as the market reacted favorably to its announcement of the $947 million acquisition of Victor Technologies, Inc., a U.S.-based welding company. Victor expands the product portfolio of Colfax's existing welding business, and it increases the combined entity's exposure to the higher margin U.S. market. The deal is consistent with Colfax's strategy to make bolt-on acquisitions in existing platforms that serve to profitably enhance the company's growth prospects, and we are optimistic that the deal will create long-term shareholder value.
From Baron Funds' first quarter 2014 letter to investors.
