Conservative · Stocks to Consider and Updates

Danaher to Buy Pall, Split Up Businesses

 DHR  Diversified manufacturer Danaher Corp. (NYSE: DHR – $87.88) said it has agreed to buy Pall Corp. for about $13.6 billion and unveiled plans to split itself into two publicly traded companies. Pall, based in Port Washington, N.Y., sells purification and filtration products to a wide range of customers including biopharmaceutical companies, airplane manufacturers, brewers and municipal water suppliers. Including debt and net of acquired cash, the deal is valued at $13.8 billion. The acquisition is Danaher’s largest takeover to date, surpassing the $5.9 billion it paid in 2011 for Beckman Coulter. Danaher went on to say that it intends to separate into a science and technology company, which will include Pall, and an industrial company, with a target date at the end of the fourth quarter of 2016. Current Danaher CEO Thomas P. Joyce will keep his position at the science business, which will retain the Danaher name and include the company’s life sciences & diagnostics and dental segments, as well as its water quality and product identification platforms. Meanwhile, James A. Lico, who leads Danaher’s test & measurement and Gilbarco Veeder-Root businesses, will become chief executive of the industrial company, which will house its test and measurement, retail fueling, telematics and automation businesses. Pending further developments as to how the separation will play out, I am going to maintain Danaher’s position in the conservative portfolio for now.


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