EEVblog Electronics Community Forum
Products => Test Equipment => Topic started by: LabSpokane on May 13, 2015, 02:28:23 pm
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With any luck, the new T&M + controls + misc division will shed the Danaher business system in the deal.
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http://www.nytimes.com/2015/05/14/business/dealbook/danaher-to-acquire-pall-for-13-6-billion-and-split-into-two.html?_r=0 (http://www.nytimes.com/2015/05/14/business/dealbook/danaher-to-acquire-pall-for-13-6-billion-and-split-into-two.html?_r=0)
Danaher to Acquire Pall for $13.6 Billion and Split Into Two
By DEALBOOK MAY 13, 2015
The conglomerate Danaher Corporation said on Wednesday that it would acquire the Pall Corporation, a water filtration systems company, for $13.6 billion in cash and split itself into two publicly traded companies.
Pall, based in Port Washington, N.Y., a city on Long Island, makes systems that remove contaminants or separate substances from a variety of solids, liquids and gases. It will be part of a science and technology company that includes Danaher’s diagnostics, dental and water quality businesses. This company, with roughly $16.5 billion in revenue including Pall’s, will keep the Danaher name.
Danaher plans to split off its industrial businesses, which include its test and measurement and automation businesses, into a separate company, with $6 billion in revenue. The company says it expects the separation to take place in a tax-free transaction by the end of next year.
“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,” Thomas P. Joyce Jr., Danaher’s chief executive, said in a statement. “Each company will be more focused with access to the capital necessary to pursue organic and inorganic growth opportunities.”
Under the terms of the deal, Danaher will acquire Pall for $127.20 a share in cash, a premium of 28 percent to its closing stock price on Monday, before The Wall Street Journal reported that Pall was nearing the end of an auction of itself. Pall has a total enterprise value of $13.8 billion, when assumed debt is included and its cash holdings are excluded.
Danaher says it expects to finance the acquisition with available cash and the issuance of debt or new credit facilities.
Goldman Sachs and the law firm Shearman & Sterling advised Pall.
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It will be interesting to see what comes of this for the T&M section (I'd love to see Danaher's philosophy permanently disposed of >:D). Hope it turns out well. :popcorn:
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To reduce confusion, the new T&M spinoff will be named Keithsight.
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It will be interesting to see what comes of this for the T&M section (I'd love to see Danaher's philosophy permanently disposed of >:D). Hope it turns out well. :popcorn:
Can it get any worse? :-//
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in other news, HP splits and forms a new financial services company, planned to be called AgiLoan.
(no, not serious) ;)
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To reduce confusion, the new T&M spinoff will be named Keithsight.
I'm placings my bets on Keithtronix
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joking aside, wouldn't they just keep the tektronix brand as is due to brand recognition?
the splitoff might get a name but I suspect the brand won't change.
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To reduce confusion, the new T&M spinoff will be named Keithsight.
That's not a good sounding name. How about Farsight? No, still not the right flavour. I know, Shortsight.
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Ok :wtf: :wtf: :wtf:
Why is water filtration worth $13BN?
I've never Danaher to overpay for anything, but this sounds insane?
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Ok :wtf: :wtf: :wtf:
Why is water filtration worth $13BN?
I've never Danaher to overpay for anything, but this sounds insane?
I believe Pall do a wide range of filtrations products for medical and industrial use, like clean room filters. That's a high value business.
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Ok :wtf: :wtf: :wtf:
Why is water filtration worth $13BN?
I've never Danaher to overpay for anything, but this sounds insane?
It makes sense in the context of the American health care system. Medical is where all the profit is. Danaher is following Agilent's lead in shedding T&M.
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Their business model seems to to what HP always dreamed of doing: being the supplier in a consumables market. Most filters like that would get replaced as part of a combined usage / time schedule, where it gets replaced after some amount of time no matter what, and more often perhaps based on usage.
HP does it with their expiring ink cartridges. The fault in their model in my case is they also used capacitors with the Plague, so - out goes the printer. No more HP printer, no more HP cartridges, no more HP printers ever.
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HP does it with their expiring ink cartridges. The fault in their model in my case is they also used capacitors with the Plague, so - out goes the printer. No more HP printer, no more HP cartridges, no more HP printers ever.
Or any other printer, since all other printer manufacturers were equally affected by the capacitor problem - Epson, Canon, Xerox, Brother Samsung, you name it.
HP did a lot of abuse with their printer consumables but they hardly used failing capacitors by purpose.
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To reduce confusion, the new T&M spinoff will be named Keithsight.
That's not a good sounding name. How about Farsight? No, still not the right flavour. I know, Shortsight.
I raise with a Flukey
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I think this is actually good news. Tektronics was basically killed by the CEOs and COOs so any change there is welcomed. Maybe they will even concentrate on doing new stuff, like leading the market with new technologies, not lagging behind it.
Right now the only reason to buy tektronix is Agilent is a little bit too expensive and I dont want chinese.
Maybe even Keithley will be a phoenix.
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With any luck, the new T&M + controls + misc division will shed the Danaher business system in the deal.
:-DD
If you are owned by Danaher you will follow the Danaher Business System!
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The Bullshit Bingo is strong with this one:
“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,” Thomas P. Joyce Jr., Danaher’s chief executive, said in a statement. “Each company will be more focused with access to the capital necessary to pursue organic and inorganic growth opportunities.”
All that was missing was 'synergy'.
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I think this is actually good news. Tektronics was basically killed by the CEOs and COOs so any change there is welcomed. Maybe they will even concentrate on doing new stuff, like leading the market with new technologies, not lagging behind it.
I doubt it. The last time Tek has been a market leader was when analog scopes were still the dominant form of oscilloscopes. Their DSO offerings were already pretty average at best long before Danaher took over. I doubt they will be able to catch up anytime soon.
Right now the only reason to buy tektronix is Agilent is a little bit too expensive and I dont want chinese.
You do know that there's more than just Tek and Agilent, right? For example Rohde & Schwarz (all kit made in Europe, even their Hameg Value Instruments), or LeCroy (most of their mid-range and all their high-end scopes are made in the US).
And not all Chinese kit is crap.
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With any luck, the new T&M + controls + misc division will shed the Danaher business system in the deal.
:-DD
If you are owned by Danaher you will follow the Danaher Business System!
Don't deny me hope, Dave! Don't try to take that away from me!
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Right now the only reason to buy tektronix is Agilent is a little bit too expensive and I dont want chinese.
You do know that there's more than just Tek and Agilent, right? For example Rohde & Schwarz (all kit made in Europe, even their Hameg Value Instruments), or LeCroy (most of their mid-range and all their high-end scopes are made in the US).
And not all Chinese kit is crap.
There was a time... not so long ago... "MADE IN SWITZERLAND"... :)
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There was a time... not so long ago... "MADE IN SWITZERLAND"... :)
Oscilloscopes? The BBC ones? That went to Gossen iirc?
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Keithronix has my vote.
More practically, I can see the new spinoff looking at the list of "assets" it has, seeing that both Fluke and Keithley are making good ROI while Tek itself isn't, and simply disposing of Tek all together.
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There was a time... not so long ago... "MADE IN SWITZERLAND"... :)
Oscilloscopes? The BBC ones? That went to Gossen iirc?
LeCroy. Until about the end of the 90s much of LeCroys operations were run in Geneva, which makes a lot of sense since LeCroy was heavily focused on particle physics and the like. The DSO was also invented there and was based on some tech developed, of course, for CERN.
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There was a time... not so long ago... "MADE IN SWITZERLAND"... :)
Indeed. Or "Made in Japan".
Unfortunately there was also a short period of "Made in Malaysia" :--
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To reduce confusion, the new T&M spinoff will be named Keithsight.
Flukeithronix. or even better : hindsight ..
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The Bullshit Bingo is strong with this one:
“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,” Thomas P. Joyce Jr., Danaher’s chief executive, said in a statement. “Each company will be more focused with access to the capital necessary to pursue organic and inorganic growth opportunities.”
All that was missing was 'synergy'.
Yep. I love how the corporate suits make it sound like they'll increase efficiency and value by merging/acquiring, and then they'll further increase efficiency and value by splitting up.
It must be that two sinking ships float better if you lash them together. Or is it that one sinking ship floats better if you saw it in half?
Perhaps I've just revealed why I'm not likely to make it into the corporate boardroom.
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The problem, perhaps, is that the version of "capital" represented by currency figures on balance sheets consistently runs roughshod over the "capital" represented by human knowledge and human experience.
Your spreadsheets will tell you how much you'll save by sacking all the senior engineers in a smaller division. Your spreadsheets will tell you nothing about the knowledge, experience, and resilience you'll lose when those engineers walk out the door. Unfortunately, the market only sees the spreadsheet totals, and too many executive boards today weight the market's opinion over everything else.
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Chew em up and spit em out.
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(http://gearsandshifts.com/wp-content/uploads/2011/12/assets.png)
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The problem, perhaps, is that the version of "capital" represented by currency figures on balance sheets consistently runs roughshod over the "capital" represented by human knowledge and human experience.
Your spreadsheets will tell you how much you'll save by sacking all the senior engineers in a smaller division. Your spreadsheets will tell you nothing about the knowledge, experience, and resilience you'll lose when those engineers walk out the door. Unfortunately, the market only sees the spreadsheet totals, and too many executive boards today weight the market's opinion over everything else.
Yep. Just watch what IBM is doing. 3 years of steadily declining revenues and sell-offs.
last I checked though, their research is still kicking and they're still top of the patent list.
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Hmm... Like the spinoff of Keysight, I think this will be good for T&M in the long run. Guess I'm an eternal optimist. However I do know conglomerate's milk cash cows to invest in growth business, severing that means the cash is available for the cow to do something with it. Come back to us Tek, follow the light...