Aug. 31, 2015, 9:33 AM| Aug. 31, 2015, 9:33 AM
Jul. 28, 2015, 3:37 PM
- Danaher (DHR +1.2%) is upgraded to Overweight from Equal Weight with a $100 price target, raised from $93, at Morgan Stanley, which believes the Pall (PLL +0.5%) acquisition could have a "transformational impact" on the company.
- While the firm believes the price being paid for PLL seems difficult to justify through financial metrics alone, the deal is likely to drive double-digit free cash flow and EPS growth through 2020 and would lead to a meaningful improvement in the risk/reward profile of the stock.
- Stanley also notes that DHR’s strong Q2 results - including 3.5% organic growth, along with margin expansion and 123% free cash conversion - "underlines DHR's ability to execute in a choppy, low growth environment and this is the world that we will likely be in for the next 2-3 years."
May 14, 2015, 3:47 PM
- Danaher (DHR +0.5%) will be hard pressed to meet its goals related to its pending $13.8B acquisition of Pall (PLL -0.1%), Deutsche Bank analyst John Inch says as he reiterates a Hold rating and $87 target on DHR, adding that its additional plan to split into two separately traded companies is based on an unclear strategy.
- DHR says it expects to save $300M in synergies over the next five years through its acquisition, but Inch says PLL's business appears well run with relatively high margins and little overlap; "the [synergy] target seems aggressive," Inch says, and with the PLL deal largely financed by commercial paper, DHR "appears relatively tapped out on debt capacity."
- Stifel's Robert McCarthy also is "mindful of the high bar for effective execution on the $300M in cost synergies," but foresees a better outcome for the DHR-PLL combination, reiterating a Buy rating and expecting shares to rise to $100.
May 13, 2015, 2:34 PM
- Danaher (DHR +1.2%) paid a high price in its $127.20/share deal for Pall (PLL +4.5%), valuing the filtration and purification company at ~22x EBITDA in the last year, roughly double the median multiple paid for big industrial and life sciences equipment acquisitions in the last five years, according to Bloomberg.
- But Janney analysts like the purchase and DHR's decision to split itself into two companies, noting DHR had less than 5% exposure to the rapidly growing pharma/biotech end-markets; the consolidation enables it to penetrate the rapidly growing biopharma market and will more than double DHR’s exposure to pharmaceutical customers.
- PLL is the no. 2 or no. 3 player in the overall bioproduction market, accounting for one-third of revenues, and is growing at a 10%-plus organic clip with 25%-30% margins, the firm says, adding that it expects continued strong growth as industry dynamics are still evolving.
- Janney thinks more acquisitions could be on the way, speculating that DHR/PLL could circle Repligen (NASDAQ:RGEN) on the belief that bioproduction media remains a gap in its product portfolio.
May 13, 2015, 7:44 AM
- Pall Corp. (NYSE:PLL) has agreed to be acquired by Danaher (NYSE:DHR) for $127.20 per share in cash, or $13.8B including assumed debt and net of acquired cash.
- The offer represents approximately a 28% premium to Pall's closing price of $99.31 on Monday, the last trading day prior to speculation about a possible transaction.
- The deal is expected to close in 2015.
- PLL +4.8%; DHR +7% premarket
- Previously: Jefferies: Danaher has upper hand to acquire Pall (May. 12 2015)
- Previously: WSJ: Danaher, Thermo Fisher compete to acquire Pall Corp. (May. 11 2015)
May 12, 2015, 8:43 AM
- Although it views both companies as logical buyers, Jefferies believes Danaher (NYSE:DHR) has the upper hand over Thermo Fisher (NYSE:TMO) for a Pall Corp. (NYSE:PLL) takeover given its greater relative balance sheet capacity.
- Yesterday, the WSJ reported Pall was in the late stages of an auction that could value the company at $13B or more.
- PLL +20.8%; DHR -0.4% premarket
May 11, 2015, 6:23 PM
- Pall Corp. (NYSE:PLL) +7.1% AH after WSJ reports it is in the late stages of an auction that could value the company at well north of $10B, with potential buyers Danaher (NYSE:DHR) and Thermo Fisher Scientific (NYSE:TMO) said to be vying for a successful deal.
- Pall's market value at today’s close is $10.6B; given prices typically paid in takeovers, the report says a deal for the maker of water filtration and purification systems could be valued at ~$13B or more.
Dec. 23, 2013, 7:32 AM
- ATMI (ATMI) has agreed to sell its LifeSciences unit to Pall Corp. (PLL) in a deal worth $185M, with after-tax proceeds to be $165M.
- The sale is part of ATMI's "ongoing exploration of strategic alternatives," the company said.
- The assets of the LifeSciences business include two Belgian sites and a shared facility in Minnesota. (PR)
Apr. 30, 2012, 3:24 AM
Pall Corp (PLL) said yesterday it will sell some of its blood collection, filtration and processing product lines to Haemonetics Corp (HAE) for ~$550M. Separately, Haemonetics announced it will acquire the business assets of Hemerus Medical, a company that develops innovative blood technologies.| Apr. 30, 2012, 3:24 AM