Danaher Announces Agreement To Sell Power Quality Business
Danaher Corp. announced that it has signed a definitive agreement to sell its power quality business to Thomas & Betts Corp., a designer and manufacturer of electrical components used in industrial, construction, communications and utility markets, for a cash purchase price of approximately $280 million, subject to post-closing adjustments.
Danaher’s power quality business is a designer, manufacturer and provider of power quality and reliability products and services. In 2006, the business had revenues of approximately $130 million. Danaher expects to report an after-tax gain on the sale of the business of approximately $150 million. The transaction is subject to regulatory approval and customary closing conditions and is expected to close in the third quarter of 2007.
Separately, Thomas & Betts also agreed to buy Drilling Technical Supply SA, a privately held French manufacturer of hazardous lighting and electrical controls, for about $20 million. For 2007, Thomas & Betts expects the acquisitions will contribute about $70 million to revenue and have a negligible impact on earnings per share. For calendar year 2008, the company expects the acquisitions to add between 10 cents and 15 cents per share in earnings and about $175 million to $185 million in revenue.