Color-measurement technology company X-Rite Inc. (XRIT) agreed
to be acquired by diversified manufacturer Danaher Corp. (DHR) in a
deal valued at $478 million.
The $5.55-a-share offer represents a 39% premium to Monday's
closing price. X-Rite shares closed Monday at $4 each and were
halted in recent premarket trading. The stock is down 14% this
year.
X-Rite Chief Executive Thomas J. Vacchiano Jr. said that joining
Danaher will give the company--known for Pantone color matching
system--resources to achieve its growth goals, expanded access to
new market and complementary technologies.
After the deal closes, anticipated in the current quarter,
X-Rite will operate as a standalone unit in Danaher's product
identification group and existing management will remain in senior
leadership positions.
Danaher expects the acquisition will complement its Esko digital
packaging design capabilities and further its leading position in
the product identification industry. The diversified toolmaker has
been relying on acquisitions to bolster a slow-growing revenue
base.
Including debt assumption and net of cash, the deal is valued at
a total of $625 million.
Danaher shares closed Monday at $54.59 and were inactive in
recent premarket trading.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com