Fullerton-based medical diagnostic equipment maker Beckman Coulter Inc. detailed plans Monday to raise up to $750 million by selling shares and debt to investors.
Beckman, which makes equipment and supplies for medical laboratories and researchers, plans to use the proceeds in part for its $800 million buy of Olympus Corp.? medical diagnostics business, set to close in the third quarter.
The company is offering two sets of bonds?250 million worth of six-year notes, and $250 million in 10-year notes. The debt offering is set to close Thursday.
Beckman is looking to raise another $235 million to $250 million by offering more shares of its stock.
Morgan Stanley & Co. and Goldman Sachs Group Inc. are handling the stock sale. Morgan Stanley, Citigroup Inc. and J.P. Morgan Chase & Co. are handling the debt offering.
The stock and debt offerings are among the largest locally since the financial crisis and Wall Street? fall meltdown.
Beckman is buying the unit from Tokyo-based Olympus Corp. to boost its business in Europe.
Olympus?medical diagnostic unit gets about half of its nearly $500 million in yearly sales from Europe, with about 30% coming from the U.S. and 20% from Asia and the rest of the world.
Beckman is looking to gain size in Europe, where big rivals Roche Diagnostics Corp., part of Switzerland? Roche Holdings Ltd., and Germany? Siemens AG dominate.
When the deal was announced in February, Beckman said it planned to finance it with a stock and bond sale.
?e believe it? going to be very conservatively financed,?Chief Executive Scott Garrett said at the time. ?nvestors should not see this as something that can? be easily afforded by Beckman Coulter.?
Garrett said he wasn? worried about issuing debt amid the financial crisis. Debt investors are receptive to companies such as Beckman, he said.
After the Olympus deal was announced, Moody? Corp. upheld a debt rating for Beckman of ?aa3,?which is at the low end of what? considered investment grade.
Moody? called Beckman? outlook ?table?and said the company stands to benefit from the addition of Olympus?diagnostic business.
Beckman? shares were down about 2% in afterhours trading on a market value of $3.4 billion.
