Danaher Corp. (NYSE:DHR) filed Quarterly Report for the period ended 2010-10-01.
Danaher Corp. has a market cap of $27.14 billion; its shares were traded at around $41.59 with a P/E ratio of 20.3 and P/S ratio of 2.5. The dividend yield of Danaher Corp. stocks is 0.2%. Danaher Corp. had an annual average earning growth of 13.9% over the past 10 years. GuruFocus rated Danaher Corp. the business predictability rank of 3-star.DHR is in the portfolios of Andreas Halvorsen of Viking Global Investors LP, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, RS Investment Management, Mario Gabelli of GAMCO Investors, Murray Stahl of Horizon Asset Management, Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC, Pioneer Investments.
Highlight of Business Operations:On July 4, 2010, the Company closed the previously announced joint venture with Cooper Industries, plc (Cooper), combining the businesses in the Companys Tools and Components segment (except for the Matco tool business, the Hennessy wheel service equipment business and the Jacobs Vehicle Systems diesel engine retarders business) with Coopers Tools business to form a new entity called Apex Tool Group, LLC (Apex). The 2009 sales, on a combined basis, of the two tools businesses contributed to Apex were approximately $1.2 billion. Each of Cooper and the Company owns a 50% interest in Apex and has an equal number of representatives on Apexs Board of Directors. Upon the closing of the transaction, Apex simultaneously obtained a credit facility and term debt financing and used $45 million of the term debt financing to purchase from the Company certain assets of the Companys Tools business. In addition, the Company has a receivable from Apex for $45 million as of October 1, 2010 related to certain assets transferred to Apex which is expected to be paid to the Company during 2011. As of the closing of the transaction, the Company deconsolidated the financial results of its contributed businesses and accounts for its investment in the joint venture based on the equity method of accounting. In accordance with accounting standards applicable to non-controlling interests in subsidiaries, the Company recognized a $291 million gain (after tax $232.2 million or $0.34 per diluted share) during the third quarter 2010 associated with the transaction reflecting the difference between the book value of the contributed business that was deconsolidated and the fair value of the consideration received in exchange, including the 50% interest in Apex and the cash and receivables received from Apex in connection with the transaction.
On September 29, 2010, the Company and Keithley Instruments, Inc. (Keithley) entered into a definitive merger agreement pursuant to which Danaher will acquire all of the outstanding Common Shares and Class B Common Shares of Keithley at a purchase price of $21.60 per share in cash for an aggregate price of approximately $300 million, including debt assumed and net of cash acquired. The acquisition is subject to customary closing conditions, including the receipt of regulatory approvals and adoption of the merger agreement by Keithleys shareholders, and is expected to be completed during the fourth quarter of 2010. Danaher anticipates paying for the purchase price using available cash on hand.
During 2009, the Company recorded pre-tax restructuring and other related charges totaling $238.5 million. The plans approved by the Company in April and August 2009 reflected managements assessment that adjustments to the Companys on-going cost structure were appropriate in light of lower demand in most of the Companys end markets resulting from the overall deterioration in global economic conditions that began in the latter half of 2008 and continued through 2009. Substantially all restructuring activities related to the 2009 plans were completed during 2009. Remaining cash payments to be made related to the completed activities, consisting primarily of payments due to former Company employees under severance agreements, were approximately $29 million as of October 1, 2010.
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