Danaher Acquires Beckman Coulter

Danaher (NYSE: DHR) is acquiring biomedical testing company Beckman Coulter (NYSE: BEC) for $5.87 Billion.  Danaher’s CFO says they are paying for the deal with 25% in cash, 60% debt, and 15% from equity  — which comes to about 40% down and 60% in debt.  This continues to indicate that the credit markets are likely tough. In the M&A heydays the deal would likely have been structured 20% down and 80% debt.  It is widely believed that Danaher’s discipline and strong corporate governance will help create value in the deal.  I hope so because they are paying a premium of 45% from the December stock price.  I see this as a way for Danaher to tap into faster growing market potential.  I truly hope so because with a P/E around 25X they are going to need a lot of growth.  Danaher has done it before so I wouldn’t rule them out.

Leave a Reply

Your email address will not be published.