- Danaher Corp DHR intends to separate its Environmental & Applied Solutions segment to create an independent, publicly traded company.
- The new company will be comprised of Danaher's Water Quality and Product Identification businesses and will be referred to as "EAS" until it is named at a later date.
- The transaction is intended to be tax-free to Danaher shareholders and is expected to be completed in 4Q23.
- "We believe that EAS will be advantaged as a standalone company with greater opportunities to pursue high-impact organic and inorganic investments," said CEO Rainer Blair.
- Related: Danaher Easily Beats Q2 Street View With Growth From Base Business; FY22 Outlook Unchanged.
- "The combination of a resilient business model—with more than 50% recurring revenue—and a talented team with a foundation built on the Danaher Business System will position EAS to continue delivering the same outstanding results as part of Danaher."
- Jennifer Honeycutt will become EAS's President and CEO upon the transaction's completion. Honeycutt joined Danaher in 1999 and currently serves as a Danaher EVP responsible for the Environmental & Applied Solutions segment.
- EAS owns a portfolio of brands in water quality and product identification. The segment generated revenue of $4.7 billion in 2021 and has approximately 16,000 associates.
- Price Action: DHR shares closed 4.35% higher at $294.01 during after-hours trading on Wednesday.
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