Split created two ‘pure-play’ buys

Article Excerpt

Medical device maker Enovis (formerly called Colfax) recently spun off its non-medical businesses as a separate firm called ESAB. We feel the split makes a lot of sense, as there was little overlap between the two businesses. Focusing on their separate markets should spur both “pure-play” stocks higher over the next few years. ENOVIS CORP. $65 is a spinoff buy. The company (New York symbol ENOV, Manufacturing sector; Shares outstanding: 54.0 million; Market cap: $3.5 billion; No dividend paid; Takeover Target Rating: Medium; www.enovis.com) makes over 1,000 medical devices in 12 facilities worldwide. It also holds 1,239 patents on these medical devices. The company was formerly known as Colfax Corp. On April 4, 2022, Colfax completed the spinoff of ESAB Corporation (see right), its fabrication and welding business. Shareholders received one ESAB share for every three shares held in Enovis. Enovis retained 10% of ESAB’s stock. It intends to sell those shares within the next 12 months. As part of the spinoff, Colfax changed its name to Enovis…