Beckman Coulter to Be Acquired by Technology Conglomerate for US$6.8 Billion

The transaction is valued at over US$6.8 billion, based on Denaher's cash tender offer to acquire all of Beckman Coulter's outstanding common stock for $83.50 per share and representing a 45% premium over stock value prior to the offer.

A leading global provider of automated biomedical analyzers and related products, Beckman Coulter, Inc. (Brea, CA, USA) has a storied past as old as the laboratory diagnostics sector it pioneered with a handful of other companies. The company was originally founded in 1935 by renowned scientist Arnold O. Beckman in order to commercialize the pH meter that he had invented. In 1982, the company merged with SmithKline to form SmithKline Beckman, but regained its independence in 1989. Beckman acquired Hybritech in 1995 and the Sanofi segment of Sanofi Pasteur Diagnostics in 1996. In a major strategic move, Coulter Corporation, the world-leader that had pioneered the cell counter invented by Wallace H. Coulter, was acquired in 1998, to form Beckman Coulter, Inc.

Beckman Coulter's subsequent acquisitions included Diagnostic Systems Laboratories (DSL) in 2005; Lumigen and Agencourt Bioscience in 2006; the flow cytometry business of Dako in 2007; and the lab-based diagnostics business of Olympus Corporation in 2009. In the same year, Beckman Coulter moved its world headquarters from Fullerton, California to the newly renovated facility in Brea, California.

With an installed base of more than a quarter of a million clinical and research systems operating in laboratories around the world, recurring revenue -- consisting of reagent test kits and other consumable supplies, service and operating-type lease payments -- represented about 80% of the company's $3.26 billion total revenues in 2009.

Danaher Corporation (Washington DC, USA), is a diversified technology concern whose Life Sciences & Diagnostics division already includes well-known global brands such as Leica, AB Sciex, Radiometer, and Molecular Devices. In 2010, Danaher's total revenues amounted to $13.2 billion, generating pretax profits of $2.14 billion.

Bob Hurley, Beckman Coulter's president and CEO said, "Following a very comprehensive and competitive process, the Board of Directors voted unanimously to accept Danaher's proposal. We believe this transaction maximizes Beckman Coulter shareholder value while strengthening the company's position as a leader in biomedical testing to the benefit of our customers and their healthcare patients around the world. Our company's rich history, strong brand, broad product portfolio, and long-standing customer relationships are major sources of value in the transaction, enabling us to leverage our global commercial infrastructure and installed base to expand opportunities in both mature and emerging markets around the world. Longer term, we will have significant opportunities to leverage our relationships across our large installed base of automated systems in hospital laboratories with that of Danaher."

Danaher's President and CEO, H. Lawrence Culp, Jr., said, "Beckman Coulter is an iconic company with a great brand, broad reach and technology leadership; well positioned in the markets it serves. Beckman provides an excellent complement to our existing Life Sciences & Diagnostics businesses. Being part of Danaher, Beckman associates will have the opportunity to leverage the power of the Danaher Business System, including the processes by which Danaher accelerates growth through new product innovation and driving sales, marketing and service, as well as its strength in continuously expanding margins."

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