Danaher is a well-diversified industrial and medical conglomerate whose products test, analyze, and diagnose. Its subsidiaries design, manufacture, and market products and offer services geared at worldwide professional, medical, industrial, and commercial markets. Danaher operates through five segments: Life Sciences & Diagnostics (research and clinical tools), Test & Measurement (electronic measurement instruments), Industrial Technologies (product identification, motion control equipment, and sensors), Environmental (turbine pumps and air/water analysis and treatment equipment), and Dental (orthodontic bracket systems and lab products).
Danaher has around 240 manufacturing and distribution facilities worldwide. 125 of these facilities are located in the US in more than 40 states; roughly 120 locations reside outside the US in over 50 other countries throughout Asia, Europe, North America, South America and Australia. The company generates almost half of its revenue from North America, primarily the US.
Built largely through acquisitions, Danaher's five business segments reflect a well balanced portfolio. Top segments Life Sciences and Test & Measurement accounted for 35% and 19% of revenues in fiscal 2012, respectively. Life Sciences products include imaging systems, acute care equipment (blood gas measurement devices), pathology diagnostics (tissue embedding and chemical reagents), and instrumentation (microscopes).
Key Danaher subsidiaries include Beckman Coulter, Matco Tools Corporation, Jacobs Vehicle Systems, Tektronix, X-Rite, EskoArtwork, Linx Printing Technologies, Fluke Corporation, Keithley Instruments, Sybron Dental Specialties, Trojan Technologies, Gems Sensors, Gilbarco, and Sea-Bird Electronics.
Danaher has enjoyed three straight years of unprecedented growth. Its revenues rose by 13% from $16.1 billion in 2011 to roughly $18.3 billion in 2012. Profits were also up by 10% from $2.2 billion to nearly $2.4 billion in 2012. Both of these totals represented historic milestones for the company.
The company's growth for 2012 was led by a 40% spike in sales from its Life Sciences & Diagnostics segment due to higher demand within the clinical, acute care, and pathology diagnostic spheres. Danaher was helped by a 27% increase in sales from China and a 15% and 10% jump in sales for the US and Japan, respectively. The record-setting revenue was also the result of the 2011 acquisition of Beckman Coulter.
Already its top segment, Danaher is working to get an even larger foothold in the life sciences sector, whose growth is being driven by such factors as aging populations, increased preventive health care, and US health care reforms. It is also seeking opportunities to beef up its industrial business. To this end, Danaher uses a combination of divestitures and acquisitions. Danaher and Eaton sold Apex Tool Group to Bain Capital for about $1.6 billion in February 2013. Throughout 2012 it sold two other companies: Accu-Sort Systems for $132 million and Kollmorgen Electro-Optical for $205 million. In 2011 it divested UK-based Pacific Scientific Aerospace to Meggitt in a deal worth $680 million.
Mergers and Acquisitions
In mid-2011 Danaher made its largest acquisition to date, purchasing California-based Beckman Coulter for approximately $5.8 billion. The landmark deal significantly widened and expanded the diversity of the company's clinical diagnostics and life sciences research product portfolio. Further pushing into the medical diganostics market, Danaher followed the Beckman Coulter acquisition up with the 2012 purchase of IRIS International, a provider of automated in-vitro diagnostics systems, for $338 million. Danaher estimates it could spend $5 billion on mergers and acquisitions in 2013 and 2014.
On the industrial side, Danaher made a move to to build on its product identification portfolio by acquiring X-Rite, a provider of color-science products that include spectrophotometers and colorimeters, for about $625 million in mid-2012. The X-Rite deal followed the 2011 acquisition of Belgium's EskoArtwork for about $470 million. EskoArtwork added a suite of software and hardware tools for digital product packaging design, commercial printing, and publishing.
T. Rowe Price Associates owns about 10% of the company.