Danaher to Acquire Keithley – Analyst Blog

Danaher Corporation (DHR) is set to acquire Keithley Instruments Inc. (KEI) in an all cash deal for $21.60 per share which values the target at $300 million, net of cash. The acquisition will cement Danaher’s leading position in the Test & Measurement industry and provides a catalyst for value addition.

Keithley Instruments, Inc. produces and markets electronic instruments and systems geared to meet the needs of engineers for manufacturing jobs as well as in academic institutions for research.

The transaction is expected to close in the fourth quarter of 2010 after meeting customary closing conditions.

Danaher Corporation is a diversified technology company designing, manufacturing, and marketing innovative products and services, which are typically characterized by strong brand names, proprietary technology and major market positions. From fire suppression systems and evacuation slide inflation to ejection seat subsystems and crew and passenger safety restraints, Danaher takes safety seriously and continues to enjoy a leading position in the aviation safety market.

Danaher organizes its business into four operating segments: The Professional Instrumentation segment encompasses two strategic platforms: Test & Measurement and Environmental. The Medical Technologies segment encompasses three key businesses: Dental Equipment and Consumables, Life Sciences, and Acute Care Diagnostics.

The Industrial Technologies segment encompasses two strategic platforms: Motion and Product Identification and three niche businesses; Aerospace and Defense, Power Quality, and Sensors and Controls.

The Tools & Components segment encompasses one strategic platform, Mechanics Hand Tools, and four focused niche businesses Jacobs Chuck, Delta Consolidated Industries, Hennessy Industries, and Jacobs Vehicle Systems.

We currently have a Neutral recommendation on Danaher Corporation.