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.