Danaher dumps T&M entirely - Page 1
Forum section: electronics / testgear

author: LabSpokane
author_rank: Super Contributor
timestamp: May 13, 2015, 02:28:23 pm
content: With any luck, the new T&M + controls + misc division will shed the Danaher business system in the deal.=========================================================================http://www.nytimes.com/2015/05/14/business/dealbook/danaher-to-acquire-pall-for-13-6-billion-and-split-into-two.html?_r=0Danaher to Acquire Pall for $13.6 Billion and Split Into TwoBy DEALBOOK MAY 13, 2015The 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.

author: nanofrog
author_rank: Super Contributor
timestamp: May 14, 2015, 03:15:02 pm
content: 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). Hope it turns out well.

author: Len
author_rank: Frequent Contributor
timestamp: May 14, 2015, 04:14:04 pm
content: To reduce confusion, the new T&M spinoff will be named Keithsight.

author: Wuerstchenhund
author_rank: Super Contributor
timestamp: May 14, 2015, 04:25:19 pm
content: Quote from: nanofrog on May 14, 2015, 03:15:02 pmCan it get any worse?

author: linux-works
author_rank: Super Contributor
timestamp: May 14, 2015, 04:26:18 pm
content: in other news, HP splits and forms a new financial services company, planned to be called AgiLoan.(no, not serious)

author: codeboy2k
author_rank: Super Contributor
timestamp: May 15, 2015, 02:30:05 am
content: Quote from: Len on May 14, 2015, 04:14:04 pmI'm placings my bets onKeithtronix

author: Fsck
author_rank: Super Contributor
timestamp: May 15, 2015, 02:47:42 am
content: 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.

author: coppice
author_rank: Super Contributor
timestamp: May 15, 2015, 03:46:33 am
content: Quote from: Len on May 14, 2015, 04:14:04 pmThat's not a good sounding name. How about Farsight? No, still not the right flavour. I know, Shortsight.

author: EEVblog
author_rank: Unknown
timestamp: May 15, 2015, 04:22:20 am
content: OkWhy is water filtration worth $13BN?I've never Danaher to overpay for anything, but this sounds insane?

author: coppice
author_rank: Super Contributor
timestamp: May 15, 2015, 04:38:54 am
content: Quote from: EEVblog on May 15, 2015, 04:22:20 amI believe Pall do a wide range of filtrations products for medical and industrial use, like clean room filters. That's a high value business.

author: LabSpokane
author_rank: Super Contributor
timestamp: May 15, 2015, 05:02:42 am
content: Quote from: EEVblog on May 15, 2015, 04:22:20 amIt 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.

author: Tomorokoshi
author_rank: Super Contributor
timestamp: May 15, 2015, 05:08:02 am
content: 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.

author: Wuerstchenhund
author_rank: Super Contributor
timestamp: May 15, 2015, 05:18:01 am
content: Quote from: Tomorokoshi on May 15, 2015, 05:08:02 amOr 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.

author: bitwelder
author_rank: Super Contributor
timestamp: May 15, 2015, 06:14:04 am
content: Quote from: coppice on May 15, 2015, 03:46:33 amI raise with a Flukey

author: tszaboo
author_rank: Super Contributor
timestamp: May 15, 2015, 10:11:09 am
content: 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.

author: EEVblog
author_rank: Unknown
timestamp: May 15, 2015, 11:10:40 am
content: Quote from: LabSpokane on May 13, 2015, 02:28:23 pmIf you are owned by Danaheryou willfollow the Danaher Business System!

author: German_EE
author_rank: Super Contributor
timestamp: May 15, 2015, 11:13:18 am
content: The Bullshit Bingo is strong with this one:“The pendingstrategic acquisitionof Pall Corporation announced today offers us theunique opportunitytodrive greater shareholder valuegoing forward as two stronger and better companies,” Thomas P. Joyce Jr., Danaher’s chief executive, said in a statement. “Each company will bemore focusedwith access to the capital necessary to pursueorganic and inorganic growth opportunities.”All that was missing was 'synergy'.

author: Wuerstchenhund
author_rank: Super Contributor
timestamp: May 15, 2015, 12:29:03 pm
content: Quote from: NANDBlog on May 15, 2015, 10:11:09 amI 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.QuoteYoudoknow that there's more than just Tek and Agilent, right? For example Rohde & Schwarz (all kit made in Europe, even theirHamegValue 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.

author: LabSpokane
author_rank: Super Contributor
timestamp: May 15, 2015, 02:34:12 pm
content: Quote from: EEVblog on May 15, 2015, 11:10:40 amDon't deny me hope, Dave! Don't try to take that away from me!

author: dom0
author_rank: Super Contributor
timestamp: May 15, 2015, 02:36:24 pm
content: Quote from: Wuerstchenhund on May 15, 2015, 12:29:03 pmThere was a time... not so long ago... "MADE IN SWITZERLAND"...

author: PioB
author_rank: Regular Contributor
timestamp: May 15, 2015, 02:49:44 pm
content: Quote from: dom0Oscilloscopes? The BBC ones? That went to Gossen iirc?

author: XFDDesign
author_rank: Frequent Contributor
timestamp: May 15, 2015, 03:37:45 pm
content: 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.

author: dom0
author_rank: Super Contributor
timestamp: May 15, 2015, 04:14:13 pm
content: Quote from: PioB on May 15, 2015, 02:49:44 pmLeCroy. 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.

author: Wuerstchenhund
author_rank: Super Contributor
timestamp: May 15, 2015, 04:54:10 pm
content: Quote from: dom0 on May 15, 2015, 02:36:24 pmIndeed. Or "Made in Japan".Unfortunately there was also a short period of "Made in Malaysia"

author: free_electron
author_rank: Super Contributor
timestamp: May 15, 2015, 05:01:16 pm
content: Quote from: Len on May 14, 2015, 04:14:04 pmFlukeithronix. or even better : hindsight ..

author: AG6QR
author_rank: Frequent Contributor
timestamp: May 15, 2015, 05:12:22 pm
content: Quote from: German_EE on May 15, 2015, 11:13:18 amYep. 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.

author: -jeffB
author_rank: Regular Contributor
timestamp: May 16, 2015, 06:51:55 pm
content: 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.

author: pickle9000
author_rank: Super Contributor
timestamp: May 16, 2015, 07:36:18 pm
content: Chew em up and spit em out.

author: Fsck
author_rank: Super Contributor
timestamp: May 17, 2015, 03:26:41 am
content: Quote from: wilfred on May 17, 2015, 03:02:17 amlast I checked though, their research is still kicking and they're still top of the patent list.

author: Noise Floor
author_rank: Regular Contributor
timestamp: May 17, 2015, 03:54:06 am
content: 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 dosomethingwith it. Come back to us Tek, follow the light...