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.
Danaher Acquires Beckman Coulter
- February 7, 2011
- By Capstone under M&A and External Growth, M&A in the News
- acquisition strategy, acquisitions, beckman coulter, business acquisitions, Capstone, credit, danaher, David Braun, External Growth, M&A, M&A News, mergers, Mergers and Acquisitions, stock market
Capstone Strategic is the meeting point of passion and process in the field of mergers and acquisitions. Founded in 1995 by CEO David Braun, Capstone meets the unique demands of mid-market companies and their corporate growth initiatives. We help clients achieve their dreams through proactive strategic growth programs and successful acquisitions. Put simply, we help companies grow.