Danaher 2009 Annual Report Download - page 77

Table of Contents
Subsequent Acquisition Activity
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 the 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 cash 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.
AB SCIEX and Molecular Devices Corporation will operate within the Company’s Medical Technologies segment, and are expected to increase the Medical
Technologies segment’s annual revenues by approximately $650 million. The acquisition of AB SCIEX significantly expands the Company’s position in the
life sciences and diagnostics business and in particular establishes a position in the mass spectrometry market. AB SCIEX is expected to provide additional
sales and earnings growth opportunities in the Company’s Medical Technologies segment, both through the growth of existing products and services and
through the potential acquisition of complementary businesses.
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In July 2007, the Company completed the sale of its power quality business for a sale price of $275 million in cash, net of transaction costs, and recorded an
after-tax gain of $150 million ($0.45 per diluted share). The power quality business designs, makes and sells power quality and reliability products and
services, and prior to the sale was part of the Company’s Industrial Technologies segment. The Company has reported the power quality business as a
discontinued operation in this Form 10-K and accordingly, the results of operations for all periods presented have been reclassified to reflect the power quality
business as a discontinued operation. The Company allocated a portion of the consolidated interest expense to discontinued operations.
The key components of income from discontinued operations related to the power quality business for the year ended December 31, 2007 were as follows ($ in
thousands):
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Net sales $ 81,141
Operating expense 72,239
Allocated interest expense 351
Earnings before taxes 8,551
Income taxes (2,279)
Earnings from discontinued operations 6,272
Gain on sale, net of $61,369 of related income taxes 149,634
Earnings from discontinued operations, net of income taxes $155,906
During 2009, the Company divested of five businesses or product lines for approximately $10 million of net cash proceeds. The divested businesses and
product lines were part of the Industrial Technologies and Tools and Components segments. The Company recorded no significant gain or loss, either
individually or in the aggregate, associated with these divestitures. The businesses divested by the Company have not been treated as discontinued operations
in the accompanying financial statements as the impact of these businesses to the Company’s results of operations, financial position, cash flows and segment
information were not significant.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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