Spinoff Spotlight

Article Excerpt

DANAHER CORP. $104 (New York symbol DHR; Manufacturing & Industry sector; Shares outstanding: 700.9 million; Market cap: $72.9 billion; Dividend yield: 0.6%; Takeover Target Rating: Medium; www.danaher.com) makes precision-testing equipment and tools. Its major customers include medical research labs, dentists and municipal water utilities. Its brands include Beckman Coulter, ChemTreat, Pantone and KaVo Kerr. In July 2016, Danaher combined its Test & Measurement business with its Industrial Technologies operations and spun off that firm as Fortive Corp. (New York symbol FTV). Shareholders received one share of Fortive for every two Danaher shares they held. Since the spinoff, Danaher is up 29%, while Foritve has gained 39%. Danaher now plans to spin off its dental business, which includes its Nobel Biocare, Ormco and KaVo Kerr brands. The company has yet to announce the details of the spinoff, but aims to complete the transaction in the second half of 2019. The new company will have $2.8 billion in annual revenue and 12,000 employees worldwide. Meantime, Danaher’s revenue in the three months ended…