Tue, Jul. 28, 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."
Tue, Jul. 21, 9:47 AM
- The MOU relates to the settlement of certain litigation involving Pall's (PLL) planned merger with Danaher (DHR -0.6%).
- Previously, four putative class actions were filed by plaintiffs, alleging that members of the Pall board of directors breached their fiduciary duties to shareholders by agreeing to the proposed transaction.
- The defendants in the consolidated action have now made certain supplemental disclosures related to the merger, which are found here.
Tue, Jun. 23, 9:42 AM
Tue, Jun. 16, 8:19 AM| Comment!
Fri, May 22, 1:11 PM
- Pall's (PLL +0.3%) Q1 earnings results are so impressive that Danaher (DHR -0.1%), who is seeking to buy the filtration and purification company, is "looking brilliant," Janney analysts say.
- Pall showed acceleration across all business lines, with organic growth reaching 9% vs. expectations of 5%, Janney says, adding it is particularly encouraged by the acceleration in the Life Science business, which reached 10.4% growth in the BioPharm division.
- DHR has finally transformed itself into a pure-play Life Science company as it splits off its Industrial division, and with high exposure to the next decade of growth in biological production, diagnostics and Asia, Danaher Life Science will be "a bouquet of growth businesses," the firm says.
Thu, May 21, 5:08 PM
Thu, May 14, 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.
Wed, May 13, 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.
Wed, May 13, 9:15 AM
Wed, May 13, 8:01 AM
- After announcing its acquisition of Pall Corp. (NYSE:PLL), Danaher (NYSE:DHR) now says it will split itself into two independent, publicly traded companies.
- The transaction will create a science and technology company that will include Pall and retain the Danaher name (generated approximately $16.5B in 2015 revenues including Pall).
- The second company will be a diversified industrial growth business (generated approximately $6B in 2015 revenues).
- The transaction is expected to occur through a tax-free separation.
- DHR +6.6% premarket
- Previously: Danaher edges out Thermo Fisher for Pall purchase (May. 13 2015)
Wed, May 13, 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)
Tue, May 12, 9:16 AM
Tue, May 12, 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
Mon, May 11, 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.
Thu, Apr. 16, 2:14 PM
Tue, Feb. 24, 7:39 AM
- Net earnings of $84.4M, or $0.78 per diluted share vs. $83.7M, or $0.75 per diluted share in the same quarter a year ago.
- Pro forma diluted EPS of $0.88, a 7% increase compared to $0.82 a year earlier (including a headwind of approximately $0.11 from foreign currency translation).
- Revenue by segment: Life Sciences - BioPharmaceuticals +13%; Food and Beverage +8%; Medical +2%; Systems -6%. Industrial - Process Technologies flat; Aerospace +8%; Microelectronics +3%; Systems +9%.
- The company reduced its full-year pro forma EPS guidance to $3.65-$3.85 (6%-12% growth over fiscal 2014) from 3.75-$3.95, due to foreign currency headwinds.
- FQ2 results
- PLL -2.8% premarket
PLL vs. ETF Alternatives
Pall Corporation supplies filtration, separation and purification technologies, using its fluid clarification and separations equipment for the removal of solid, liquid and gaseous contaminants from a wide variety of liquids and gases.
Other News & PR