CFX - As The Colfax Chapter Ends Both ESAB And Enovis Have Something To Prove

• Colfax is splitting the company, spinning off the welding business (ESAB) to shareholders as a stock dividend, while retaining the medical device operations and renaming itself Enovis.
• ESAB has made more progress in recent years than it often gets credit for, including regaining share from Lincoln Electric and Illinois Tool Works, but short-cycle industrial may be cooling.
• Enovis is an odd mix of well-established low-growth businesses (bracing, et al) and higher-growth major joint and extremities; management's growth targets may be too demanding at high single-digits.
• Both ESAB and Enovis are worth watching as they trade post-split, with ESAB facing more near-term sentiment risk and Enovis facing a higher bar for performance.

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