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 255 manufacturing and distribution facilities worldwide. 130 of these facilities are located in the US in more than 40 states; roughly 125 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 (42% of sales).
Built largely through acquisitions, Danaher's five business segments reflect a well balanced portfolio. Top segments Life Sciences and Test & Measurement accounted for 36% and 19% of revenues in fiscal 2013, 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 five straight years of unprecedented growth. Its revenues rose by 5% from roughly $18.3 billion in 2012 to $19.1 billion in 2013. Profits were also up by 13% from nearly $2.4 billion in 2012 to $2.7 billion in 2013. Both of these totals represented historic milestones for the company.
The company's historic growth for 2013 was led by a 6% spike in sales from its Life Sciences & Diagnostics segment due to higher demand within the clinical, acute care, and pathology diagnostic spheres. Danaher was also helped by increases in automation hardware products in high-growth markets, particularly China.
Danaher's rise in profits for 2013 was fueled by the higher overall revenue coupled with a gains on the sale of an unconsolidated joint venture and gains on the sale of marketable equity securities which were absent in fiscal 2012. The company's operating cash flow has also trended upwards the last few years, rising 2% in 2013.
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.
In 2014 Danaher announced it was purchasing Nobel Biocare Holding for $2.2 billion. The deal is expected to significantly widen Danaher's market presence in the global dental industry. Headquartered in Zurich, Switzerland, Nobel Biocare serves customers in 80 markets globally, supplying dental implant systems, high-precision individualized prosthetics, and biomaterials and digital diagnostics products.
Also in 2014 Danaher agreed to sell most of its communications unit -- composed of Tektronics, Fluke Networks and Arbor Networks -- to NetScout.
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.