Colfax IPO Should Get Your Liquids Flowing

Colfax (CFX) is a supplier of pumps, specialty valves, and other fluid handling equipment.

All quotations are from the company’s most recent S-1 filing with links provided.

Business Overview (from prospectus)

We are a global supplier of a broad range of fluid handling products, including pumps, fluid handling systems and specialty valves. We believe that we are a leading manufacturer of rotary positive displacement pumps, which include screw pumps, gear pumps and progressive cavity pumps. We have a global manufacturing footprint, with production facilities in Europe, North America and Asia, as well as worldwide sales and distribution channels. Our products serve a variety of applications in five strategic markets: commercial marine, oil and gas, power generation, global navy and general industrial. We design and engineer our products to high quality and reliability standards for use in critical fluid handling applications where performance is paramount. We also offer customized fluid handling solutions to meet individual customer needs based on our in-depth technical knowledge of the applications in which our products are used. Our products are marketed principally under the Allweiler, Fairmount, Houttuin, Imo, LSC, Portland Valve, Tushaco, Warren and Zenith brand names. We believe that our brands are widely known and have a premium position in our industry. Allweiler, Houttuin, Imo and Warren are among the oldest and most recognized brands in the markets in which we participate, with Allweiler dating back to 1860.

Offering: 18.8 million shares at $15 - $17 per share. Net proceeds of approx. $111.3 million to be to repay indebtedness under credit facility, to pay dividends and bonuses previously declared.

IPO Underwriters: Merrill Lynch (MER), Lehman Brothers (LEH), UBS Investment Bank (UBS).

Financial Highlights:

Gross profit for the year ending Dec. 31, 2007 was $175,591 vs. $136,798 for the year ended Dec. 31, 2006…selling and g/a expenses were $98,500 for the year ending Dec. 31, 2007 vs.$ 80,103 for the year ending Dec. 31, 2006…R&D expenses were $4,142 for the year ending Dec. 31, 2007 vs. $3,336 for the year ending Dec. 31, 2006…EBDITA for the year ending Dec. 31, 2007 was $138,514 vs $29,627 for the year ending Dec. 31, 2006 (EBITDA includes legacy asbestos (income) expense of $(50,346), $33,816 and $18,112 for the years ended December 31, 2007, 2006 and 2005, respectively, and discontinued operations expense (income) of $1,397 and $(616) for the years ended December 31, 2006 and 2005, respectively.)

Top Competitors:

The markets we serve are highly fragmented and competitive. Because we compete in selected niches of the fluid handling industry, there is not any single company that competes directly with us across all of our markets. As a result, we have many different competitors in each of our strategic markets. In the commercial marine market, we compete primarily with Naniwa Pump Manufacturing Co., Ltd., Shinko Industries, Ltd., Shin Shin Machinery Group Co., Ltd. and Taiko Kikai Industries Co., Ltd. In the oil and gas market, we compete primarily with Joh. Heinr. Bornemann GmbH, Leistritz Pumpen GmbH, Netzsch Mohnopumpen GmbH and Robbins & Myers, Inc (RBN). In the power generation market, we compete primarily with Buffalo Pumps (a subsidiary of Ampco-Pittsburgh Corporation (AP)), KSB Group and Sulzer Ltd. In the global navy market, we compete primarily with Buffalo Pumps, Carver Pump Company, Curtiss-Wright Corporation (CW) and Tyco International, Inc (TYC).

Resources:

• Company website
• Online roadshow
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