Danaher 2009 Annual Report Download - page 51

Table of Contents
November 2, 2007). Subsequent to the acquisition, the Company issued $500 million of 5.625% senior notes due 2018 in an underwritten public offering
and used the net proceeds from this offering to repay a portion of the commercial paper issued to finance the Tektronix acquisition. Tektronix had revenues of
approximately $1.1 billion in its most recent completed fiscal year prior to the acquisition.
In July 2007, the Company acquired all of the outstanding shares of ChemTreat for a cash purchase price of $425 million including transaction costs. No
cash was acquired in the transaction. The Company financed the acquisition primarily with proceeds from the issuance of commercial paper and to a lesser
extent from available cash. ChemTreat had revenues of approximately $200 million in its most recent completed fiscal year prior to the acquisition.
In addition, the Company acquired ten other companies or product lines during 2007 for consideration of approximately $273 million in cash, including
transaction costs and net of cash acquired, and $4 million of debt assumed. Each company acquired manufactures products and/or provides services in the
test and measurement, dental technologies, product identification, sensors and controls or environmental instruments markets. These companies were all
acquired to complement existing units of the Professional Instrumentation, Medical Technologies or Industrial Technologies segments. The aggregate annual
sales of these ten acquired businesses at the time of their respective acquisitions, in each case based on the company’s revenues for its last completed fiscal
year prior to the acquisition, were $123 million.
In addition to the twelve 2007 acquisitions noted above, during the first quarter of 2007, the Company completed the acquisition of the remaining shares of
Vision Systems Limited not owned by the Company as of December 31, 2006 for cash consideration of approximately $96 million.
In July 2007, the Company completed the sale of its power quality business generating approximately $275 million of net cash proceeds. This business,
which was part of the Industrial Technologies segment and designs and manufactures power quality and reliability products and services, had aggregate
annual revenues of approximately $130 million in 2006. The Company used the proceeds from this sale for general corporate purposes, including debt
reduction and acquisitions.
Recent Acquisition Developments
Subsequent to December 31, 2009, the Company completed the previously announced acquisition of the Analytical Technologies division of MDS, which
includes a 50% ownership position in Applied Biosystems/MDS Sciex joint venture (“AB SCIEX”), a mass spectrometry business, and a 100% ownership
position in the former Molecular Devices Corporation, a bioresearch and analytical instrumentation company. In a separate, but related transaction, the
Company simultaneously completed the acquisition of the remaining 50% ownership position in AB SCIEX from Life Technologies Corporation. The
aggregate purchase price for the combined transactions was approximately $1.1 billion, including debt assumed and net of cash acquired. The Company
funded the purchase price for this transaction from available cash on hand.
Financing Activities and Indebtedness
Cash flows from financing activities consist primarily of proceeds from the issuance of commercial paper, common stock and notes, excess tax benefits from
stock-based compensation, repayments of indebtedness, repurchases of common stock and payments of dividends to shareholders. Financing activities
provided cash of $404 million during 2009 compared to $1.1 billion of cash used during 2008. The year-over-year change was primarily due to the proceeds
from the issuance of the 2019 Notes (described below); lower repayments of borrowings during 2009 as compared to 2008; and the repurchase of shares of
Danaher common stock pursuant to the Company’s stock repurchase program during 2008.
Total debt was $2.9 billion at December 31, 2009 compared to $2.6 billion at December 31, 2008. The Company’s debt as of December 31, 2009 was as
follows:
• $180 million of outstanding U.S. dollar denominated commercial paper;
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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