• Headquarters: 5300 N. Kraemer Blvd., Brea <br> • Employees: 12,000; 1,700 in OC <br> • Business: Medical testing, research products maker <br> • Market value as of April 1: $5.9 billion<br> • 2010 revenue: $3.7 billion, up 12%. <br>• 2010 net income: $231 million, up 57%
Year in Review
Medical testing and research products company Beckman Coulter is about to end its time as a public company with a pending $6.8 billion acquisition by Washington, D.C.’s Danaher Corp.
The buyout caps a difficult 2010 for Beckman that was dominated by quality and regulatory issues.
Beckman’s difficulties stemmed from a recall of a profitable heart disease test that drove a big stock drop and a 2010 profit revision, and drew private equity firms and others as possible buyers.
Beckman is working on a new version of the test and has said it should be available later this year.
Regulatory issues overshadowed other things at Beckman, including the integration of its $780 million buy in 2009 of Olympus Corp.’s medical diagnostic business.
In February, Danaher, a diversified conglomerate best known as the maker of Craftsman tools sold at Sears, emerged as the winner of a bidding war for Beckman.
Danaher is seeking to spur growth and build up its medical business with the acquisition.
What’s Ahead
Danaher expects its deal for Beckman to be completed in the third quarter. After that, Danaher is expected to integrate Beckman into its business, but with a light hand, if past deals are any indication.
Beckman is expected to keep its name and a good portion of its operations intact, although some streamlining and job cuts are likely.
Wall Street’s Take
Analysts like the acquisition, which values Beckman at 33% more than what it was worth before the February announcement and 45% higher than what it was worth in early December, when sale talk emerged.
“In terms of the valuation, I think Dan-
aher got a good deal,” said Bruce Jackson,
a medical diagnostic analyst with New
York investment bank Morgan Joseph LLC. “Any acquisition that is accretive is a good thing.”
Shares of Beckman are up are about 32% in the past year with a recent market value of nearly $6 billion.
