Danaher Corporation to buy Pall Corporation for US$13.8bn

Plans to split into two independent, publicly traded companies

Danaher Corporation is to acquire Pall Corporation, a leading company in filtration, separation and purification technologies for US$13.8bn. Completion is expected this year.

Danaher says it then intends to split into two independent, publicly traded companies. One will retain the Danaher name and comprise Pall and Danaher's existing life sciences and diagnostics, dental, water quality and product identification businesses. Collectively these businesses generated approximately US$16.5bn in revenues in their most recently completed fiscal years.

The other, NewCo, will be a diversified industrial company making test and measurement systems, retail fuelling, telematics and automation. It will comprise Danaher's test & measurement instruments platform including Matco, Gilbarco Veeder-Root, automation and sensors, as well as its other speciality industrial businesses.

The company is aiming to complete the separation around the end of the 2016 calendar year, subject to the satisfaction of closing conditions, including obtaining final approval from the Danaher Board of Directors.

The pending strategic acquisition of Pall Corporation offers us the unique opportunity to drive greater shareholder value going forward

Thomas Joyce, President and Chief Executive of Danaher, said: 'The pending strategic acquisition of Pall Corporation 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.'

Joyce and Daniel Comas will continue as President and Chief Executive and Executive Vice President and Chief Financial Officer of Danaher, respectively, following the completion of the transaction.

James Lico, currently Executive Vice President with responsibility for Danaher's Test & Measurement and Gilbarco Veeder-Root businesses, will become President and Chief Executive of NewCo upon separation.

Larry Kingsley, Chairman and Chief Executive of Pall Corporation, said: '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.'

Companies