Welding and valves manufacturer Colfax Corp (CFX.N) is nearing a deal to sell its air and gas handling division to private equity firm KPS Capital Partners for more than $1.8 billion, people familiar with the matter said on Sunday.

The sale would help Colfax pay down debt following its $3.15 billion acquisition in February of medical devices maker DJO Global Inc from buyout firm Blackstone Group LP (BX.N). It underscores its decision to focus on high-margin and less cyclical businesses.

A deal could be announced as soon as this week, the sources said, cautioning it was still possible that negotiations end without a deal. The sources asked not to be identified because the negotiations were confidential.

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