Continuing a trend of downsizing while growing, diversified manufacturer Danaher Corp. (NYSE:DHR) spent $1.1 billion on two
related acquisitions as it cuts 3,300 jobs along with 30 facilities.
Danaher will acquire the analytical technologies division of MDS Inc. (NYSE:MDZ), which includes 50% of an Applied Biosystems-MDS Sciex joint venture, a mass spectrometry business named AB Sciex, and 100% of a bioresearch and analytical instrumentation company. Also, Danaher will pick up the other 50% of the JV by acquiring that stake from Life Technologies Corp. (NASDAQ:LIFE). The acquired businesses will operate within Danaher's medical technologies segment and the deal is expected to close next quarter.
While fortifying strengths, like many other strategics, Washington's Danaher is trying to navigate a troubled economy. It will now "accelerate its 2009 restructuring activities," which are now anticipated to total $225 million to $250 million from the previous estimate of $150 million to $170 million. With the new job cuts and facility shutdowns, Danaher expects to save about $220 million annually.
Danaher president and CEO, H. Lawrence Culp Jr. said in a statement, "We are optimistic about the continuing signs of stabilization that we have seen during the first two months of the third quarter." In April, Culp voiced his
willingness to acquire after raising $750 million in a 10-year bond issue. So it was no wonder at the time when Danaher dealmaker Daniel Raskas was upbeat in his remarks on a panel at a Conference Board corp dev meeting in New York.
We've tracked several
companies that have downsized amid growth, including Medtronic Inc. (NYSE:MDT), Johnson Controls Inc. (NYSE:JCI), Caterpillar Inc. (NYSE:CAT) and Nokia Corp. (NYSE:NOK). -
Baz HiralalSee the acquisition announcementAlso see:
Danaher CFO on deals: We can see clearly now
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