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MarketScreener Homepage  >  Equities  >  Nyse  >  Danaher Corporation    DHR

DANAHER CORPORATION

(DHR)
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Exclusive: Colfax picks Goldman to sell Howden business - sources

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01/22/2019 | 11:14am EST

LONDON/FRANKFURT (Reuters) - Colfax Corp is pressing ahead with plans to sell its air and gas handling unit Howden as part of a shift to focus on the medical devices industry and has hired Goldman Sachs to handle the process, four sources close to the matter told Reuters.

An auction process for the 165-year old Scottish company, which makes heat exchangers and gas compressors largely for oil and gas companies, is expected to kick off in the coming days, the sources said.

Colfax is hoping to fetch about 1.5 billion pounds from the sale of the business, which employs more than 5,000 people globally and has operations in 16 countries including Mexico and Canada. It employs 350 people at its main UK site in Renfrew, near Glasgow.

Howden, founded in 1854 and bought by Colfax in 2012, makes core earnings of more than 150 million pounds, two of the sources said, adding the business would mainly appeal to private equity funds due to lacklustre interest amid industry buyers.

Goldman, which declined to comment, is expected to send confidential information to potential bidders this week, one of the sources said.

Colfax was not immediately available for comment.

The sale would cement Colfax's shift from its industrial roots following the $3.15 billion purchase of medical devices maker DJO Global Inc. in November.

Colfax, which has a market value of $2.8 billion, bought DJO - its biggest ever deal - to tap growing demand for medical devices such as knee and hip implants from aging baby boomers.

At the time, it said it would explore options - including a possible sale - for Howden, which in 2017 generated 40 percent of Colfax's total revenue of $3.3 billion.

The change of direction spooked some investors, with Colfax shares tumbling 15 percent on the news.

Colfax's founders – brothers Steven and Mitchell Rales – are familiar with the medical equipment industry as they also launched Danaher Corp, a key player in medical devices, back in 1984. Colfax CEO Matt Trerotola worked at Danaher before joining Colfax in 2015.

(Reporting by Pamela Barbaglia; Editing by Mark Potter)

By Pamela Barbaglia and Arno Schuetze

Stocks mentioned in the article
ChangeLast1st jan.
COLFAX CORPORATION -5.52% 35.68 Delayed Quote.3.55%
DANAHER CORPORATION -3.51% 151.79 Delayed Quote.2.18%
GENERAL MOTORS COMPANY -4.90% 31.545 Delayed Quote.-9.59%
GOLDMAN SACHS GROUP INC. -3.41% 217.05 Delayed Quote.-2.34%
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Financials (USD)
Sales 2020 21 310 M
EBIT 2020 4 052 M
Net income 2020 2 990 M
Debt 2020 19 898 M
Yield 2020 0,44%
P/E ratio 2020 37,4x
P/E ratio 2021 32,8x
EV / Sales2020 6,06x
EV / Sales2021 5,44x
Capitalization 109 B
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Technical analysis trends DANAHER CORPORATION
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Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 172,07  $
Last Close Price 156,82  $
Spread / Highest target 24,3%
Spread / Average Target 9,73%
Spread / Lowest Target -23,5%
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Managers
NameTitle
Thomas Patrick Joyce President, Chief Executive Officer & Director
Steven M. Rales Chairman
Matthew R. McGrew Chief Financial Officer
Alan G. Spoon Independent Director
Donald Jerry Ehrlich Lead Independent Director
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