Danaher To Become Two Separate Companies

The transaction will create a science and technology growth company united by common business model characteristics, and a diversified industrial growth company – NewCo.

WASHINGTON — Danaher Corporation announced on Wednesday its intention to separate the company into two independent, publicly traded companies. The transaction will create:

  • A science and technology growth company united by common business model characteristics, including significant recurring revenue and an attractive margin profile. The company will retain the Danaher name. Collectively, its businesses generated approximately $16.5 billion in revenues (including Pall Corporation, which Danaher has signed an agreement to acquire), in their most recently completed fiscal years.
  • A diversified industrial growth company (NewCo) with market leading positions, strong brand names and tremendous free cash flow generation. NewCo's businesses generated approximately $6.0 billion in revenues in the most recently completed fiscal year.

The transaction is expected to occur through a tax-free separation.

Thomas P. Joyce, Jr., President and Chief Executive Officer, stated, "This is an exciting day for Danaher and an important step in our company's history. Danaher has always been at its best when all platforms have the ability to invest in the highest impact organic growth opportunities, pursue meaningful acquisitions and use the Danaher Business System to continuously improve performance. The pending strategic acquisition of Pall Corporation announced today 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."  

Thomas P. Joyce, Jr. and Daniel L. Comas will continue to serve as President and Chief Executive Officer and Executive Vice President and Chief Financial Officer of Danaher, respectively, following the completion of the transaction.

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

"I am honored and humbled that the Board has selected me to lead this new diversified industrial growth company," said Mr. Lico. "As a standalone company, we will have the opportunity to pursue a more focused growth strategy with a renewed emphasis on M&A for many of these businesses. We have an outstanding team that will ensure this separation goes smoothly and that the company will continue to win in the markets in which we compete. I am committed to building and reinforcing the DBS culture and ensuring the company exceeds our customers, shareholders and associates' expectations." 

Steven M. Rales, Chairman of the Danaher Board of Directors, remarked, "Jim will be a fantastic leader and the Board looks forward to working closely with him to make sure this separation is executed to the Danaher standard. We are confident that the separation will give both companies additional focus to better serve their customers' needs while providing substantial opportunities for our associates and creating greater value for our shareholders."


Danaher will be united by common business model characteristics, including high recurring revenue and gross margins, and will be well positioned to improve profitability, grow organically and deploy capital to generate substantial earnings growth. It will enjoy leading positions in markets with favorable secular growth trends.

The science and technology growth company will include Danaher's existing Life Sciences & Diagnostics and Dental segments, Water Quality and Product Identification platforms and Pall Corporation.


NewCo, a diversified industrial growth company, will have market leading positions and outstanding brands in such areas as test and measurement, retail fueling, telematics and automation. It will comprise Danaher's Test & Measurement Instruments platform including Matco, Gilbarco Veeder-Root, Automation and Sensors, as well as its otherSpecialty Industrial businesses. As a smaller, standalone entity, NewCo is expected to have an outstanding margin profile and tremendous free cash flow generation allowing it to accelerate its revenue and earnings growth trajectorys while providing flexibility in capital deployment.


The Company is targeting to complete the separation around the end of calendar year 2016, subject to the satisfaction of closing conditions, including obtaining final approval from the Danaher Board of Directors, satisfactory completion of financing, receipt of tax opinions, receipt of favorable rulings from the Internal Revenue Service and receipt of other regulatory approvals.

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