DOW JONES NEWSWIRES
L-3 Communications Holdings Inc. (LLL) agreed to acquire Danaher
Corp.'s (DHR) Kollmorgen Electro-Optical unit for $210 million,
broadening the defense contractor's presence in electronics systems
used in military and commercial applications.
L-3 expects the deal, seen closing in the first quarter, to
immediately add to its results. Kollmorgen--which develops and
manufactures specialized equipment such as submarine photonics
systems and periscopes--is expected to generate 2012 sales of about
$160 million to $170 million, according to L-3.
Danaher said Kollmorgen and the recently divested Accu-Sort
Systems Inc. are expected to contribute a penny a share to its
earnings in the fourth quarter and 4 cents for the year.
L-3 in October reported that third-quarter earnings edged down
1.3% as sluggish government sales weighed down top-line
results.
Danaher in October reported third-quarter profit fell 19%, as
stronger sales couldn't make up for high acquisition-related costs.
The diversified toolmaker has been focusing its efforts on medical
technology, testing and measurement and dental equipment.
Shares of L-3 and Danaher closed Monday at $65.18 and $45.68,
respectively. Neither were active premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com