$83.50 per share price represents a 45% premium on pre-rumor stock value.
Widespread speculation about who may be seriously looking to snap up Beckman Coulter has ended with the announcement that Danaher is to acquire the diagnostics systems firm for about $6.8 billion in cash, including debt assumed, and net of cash acquired. Danaher is looking to purchase all of Beckman Coulter’s outstanding common stock for $83.50 per share, which represents a 45% premium on its closing price on December 9, 2010, just before rumors that the firm was looking for a potential buyer hit the headlines.
Danaher will initiate its tender offer within the next seven days through an affiliate company. Once the acquisition has been completed Beckman Coulter will become part of Danaher’s life science and diagnostics segment, joining its existing Leica, AB Sciex, Radiometer, and Molecular Devices businesses.
Beckman Coulter says the agreement follows a comprehensive, competitive process, which resulted in the unanimous acceptance of Danaher’s proposal by its board of directors. “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,” comments Bob Hurley, Beckman Coulter president and CEO.
Beckman Coulter manufactures diagnostic systems and life science research instruments. The firm says it currently has some 200,000 systems operating in laboratories around the globe. Total third quarter 2010 revenues of $893.8 million, including $112.2 million from its 2009 acquisition of Olympus Diagnostics, was up 8.6% (9.8% at constant currency) on the same quarter in 2009.
Danaher is a diversified technologies firm with business activities encompassing four reporting segments and comprising seven strategic platforms. These include Medical Technologies (life sciences, diagnostics, and dental), Professional Instrumentation (environmental, test, and measurement), Industrial Technologies (motion, product ID, and focused niche businesses) and Tools & Components (mechanic’s hand tools).
Danaher’s overall sales for the fourth quarter of 2010 were $3.6 billion, 15% up on Q4 2009. Sales for the full 2010 year reached $13.2 billion, up from just under $11.2 billion in 2009. Sales by its life science and diagnostics business were $681.9 million for the third quarter of 2010, up from $432.1 million during Q4 2009. Full year 2010 sales by the life science and diagnostics division reached $2.3 billion, up from $1.5 billion in 2009.