DJO parent company Enovis (NYSE:ENOV) announced today that completed the spinoff of its fabrication technology business, ESAB (NYSE:ESAB).
Following the split, Enovis — formerly Colfax — becomes a new stand-alone orthopedic device company while ESAB will focus on fabrication technology operating out of the Colfax headquarters in Annapolis Junction, Maryland.
According to a news release, immediately after the separation of the businesses, Enovis enacted a reverse stock split of all issues and outstanding shares of its common stock at a one-for-three ratio. Both Enovis and ESAB common stock will begin regular-way trading today — April 5, 2022 — on the New York Stock Exchange.
In connection with the separation, Enovis shareholders received one share of ESAB common stock for every three shares of Enovis common stock held at the close of business on March 22, 2022. Approximately 54 million shares (about 90%) of ESAB’s common stock were distributed to Enovis shareholders and approximately 6 million shares (10%) were retained by Enovis,w which plans to divest those shares within 12 months after the separation in a tax-efficient exchange for its outstanding debt.
“With the successful completion of the separation, both ESAB and Enovis are well-positioned to create significant value for their associates, customers, shareholders and communities around the world,” Enovis CEO Matt Trerotola said in the release. “We are thrilled about each company’s bright future that is fueled by strong global teams, powerful innovation engines and a commitment to continuous improvement.”