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Danaher To Acquire Pall, Intends To Split Into 2 Companies

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Shares of Pall Corporation (NYSE: PLL) surged on Tuesday after media reports suggested the company would receive buyout offers from competitors. CNBC's David Faber reported Danaher Corporation (NYSE: DHR) is in a position to offer an all cash deal for Pall.

On Wednesday, Danaher confirmed the market reports and announced it will acquire Pall for $127.20 per share in cash, valuing the deal at $13.8 billion.

Danaher also announced it will separate itself into two independent, publicly traded companies and occur through a tax-free separation.

The first company will focus on science and technology growth united by common business model characteristics, including significant recurring revenue and an attractive margin profile. This company will retain the Danaher name and will include the newly acquired Pall. The business segments combined for $16.5 billion in revenues in their most recently completed fiscal years.

The "NewCo" will consist of a diversified industrial growth company with market leading positions, strong brand names and tremendous free cash flow generations. The "NewCo" segments generated approximately $6 billion in revenues in the most recently completed fiscal year.

Thomas P. Joyce, Jr., President and Chief Executive Officer of Danaher, stated in a press release: "This is an exciting day for Danaher and an important step in our company's history. Danaher has always been at its best when all platforms have the ability to invest in the highest impact organic growth opportunities, pursue meaningful acquisitions and use the Danaher Business System to continuously improve performance. The pending strategic acquisition of Pall Corporation announced today offers us the unique opportunity to drive greater shareholder value going forward as two stronger and better companies. Each company will be more focused with access to the capital necessary to pursue organic and inorganic growth opportunities. DBS will remain the foundation of both companies, allowing each to further strengthen their market leading positions while continuously improving growth, margins and cash flow."

In a separate press release, Larry Kingsley, Chairman and Chief Executive Officer of Pall Corporation said, "This transaction delivers substantial value to our shareholders and creates an incredible opportunity for long-term growth that will benefit all of our stakeholders. Pall is a complementary fit for Danaher, with Danaher's proven management system and strong financial position coupled with Pall's expertise, brand and channel strength in the field of filtration and separation science enabling the creation of tremendous value for the global customers of the combined company. Our employees will benefit by being associated with a world-class company that has the capability to further enhance Pall's market position."

Posted-In: David Faber Larry Kingsley Thomas P Joyce JrNews M&A


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