Danaher agrees to buy firm for $5.87b
NEW YORK — Medical and industrial instruments maker Danaher Corp. said yesterday it agreed to buy medical testing instrument maker Beckman Coulter for about $5.87 billion.
Beckman Coulter Inc. makes products that simplify and automate biomedical testing. It will become part of Danaher’s life sciences and diagnostics business if the deal goes through. That would more than double the life science unit’s revenue, making it Danaher’s largest business.
Beckman Coulter, which is based in Brea, Calif., reportedly put itself up for sale in December.
Danaher has agreed to pay $83.50 per Beckman Coulter share, a 45 percent premium over Beckman’s share price on Dec. 9, the day before the acquisition rumors first surfaced.
Danaher valued the purchase at $6.8 billion including Beckman Coulter’s debt and its cash on hand.
The deal is expected to be completed in the first half of the year. Closing depends on a majority of Beckman Coulter shareholders tendering their shares in favor of the deal. Beckman Coulter said its board unanimously supports the sale.
Shares of Beckman Coulter surged $7.48 to close at $82.65.
Shares of companies making large acquisitions often trade lower, but Danaher shares rose $1.05 to $49.03, an early indication that investors approve of the combination.
In a note to clients, Citi Investment Research analyst Deane Dray said Danaher is paying a reasonable price for Beckman Coulter, which is a “nice fit’’ with the rest of its business and should add to its profit immediately, excluding acquisition costs.
