DOW JONES NEWSWIRES
Danaher Corp. (DHR) agreed to acquire lab-equipment maker
Beckman Coulter Inc. (BEC) for $5.87 billion as the diversified
tool manufacturer looks to gain a stronger foothold in the growing
diagnostics industry.
The deal ends two months of speculation about the future of
Beckman, which makes diagnostic instruments used in clinical
testing. The Wall Street Journal reported in December that Beckman
had put itself on the block and could fetch more than $5 billion in
a sale. Analysts had speculated the company would attract a large
number of suitors.
Under the terms of the deal, Danaher will pay $83.50 for each
Beckman share, which the companies said represents a premium of
about 45% over where the stock was trading Dec. 9, before takeover
rumors surfaced.
Beckman shares surged 10% to $82.70 in premarket trading Monday,
while Danaher was off 0.2% to $47.88. Beckman shares have never
traded as high as the offer price and were under $44 as recently as
September. The stock is up 36% in the past three months, thanks to
the acquisition speculation.
Danaher--which makes Craftsman-brand tools for Sears Holdings
Corp. (SHLD) and Husky wrenches for Home Depot Inc. (HD)--has been
relying on acquisitions to bolster a slow growing revenue base,
ratcheting up purchases this year and focusing its efforts on
medical technology, testing and measurement and dental equipment,
among other things.
Beckman would become part of Danaher's life sciences and
diagnostics segment.
The deal, structured as a tender offer, is expected to be
completed in the first half of 2011. The companies valued it at
about $6.8 billion, including debt assumption and net of cash
acquired.
"Following a very comprehensive and competitive process, the
board of directors voted unanimously to accept Danaher's proposal,"
Beckman Chief Executive Bob Hurley said. "We believe this
transaction maximizes Beckman Coulter shareholder value while
strengthening the company's position as a leader in biomedical
testing to the benefit of our customers and their healthcare
patients around the world."
Late last month, Danaher reported its fourth-quarter earnings
rose 78%, topping the company's own estimates, as sales improved,
margins surged and the company saw increased restructuring costs in
the prior quarter.
Meanwhile, Beckman in October said its third-quarter earnings
surged, following charges the prior year, while the medical
test-maker showed signs of improvement as it worked through quality
problems and pressure from the weakened economy.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356;
lauren.pollock@dowjones.com