2nd UPDATE: Danaher To Acquire Genetix For $102.8 Million
December 18 2009 - 9:16AM
Dow Jones News
Danaher Corp. (DHR) agreed to acquire Genetix Group PLC (GTX.LN)
in a deal valued at GBP63.4 million ($102.8 million), the latest
medical technology acquisition this year for the manufacturing
conglomerate.
Danaher will end up paying GBP50 million ($82 million), net of
Genetix's cash on hand.
Genetix holders will receive 85 pence a share, a 35% premium to
Thursday's closing price in London. The deal, expected to close in
the first quarter, has the approval of the imaging and diagnostic
company's board while investors representing 83% of Genetix's
shares have indicated they will back the offer, with 78% agreeing
to back it even in the event of a competing offer being made.
Genetix Chief Executive Charles De Rohan told Dow Jones
Newswires the deal will bring together the Leica digital scanners
of Danaher and Genetix's imaging software, which is used by
scientists and drug developers to view digital images of cells. The
two technologies are complementary, he added.
Genetix also gains access to more capital and new markets
through the takeover.
Danaher CEO Lawrence Culp last month indicated the company saw
plenty of opportunities for acquisitions owing to its cash
reserves. The company's free cash flow, or cash left over after
capital expenditures, has exceeded the company's income for 17
consecutive years. Through the first nine months of 2009, the
company generated $1.19 billion of free cash.
The U.S. company, whose business lines range from making
Craftsman tools to orthodontic braces, relies on acquisitions to
drive annual revenue higher. As of Nov. 11, the company this year
had announced deals expected to boost its annual revenue by $1
billion.
Culp in November said the company is likely to focus its
deal-making activities in medical technology, testing and
measurement instruments, dental equipment and
product-identification technology used to track inventories of
food, pharmaceuticals and other consumer products.
Danaher shares closed Thursday at $74.45 and didn't trade
premarket.
-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272;
jason.douglas@dowjones.com
(Tess Stynes and Bob Tita contributed to this article.)
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