Danaher's (NYSE:DHR) decision to acquire Beckman Coulter (NYSE:BEC) has had some immediate negative ramifications, as Standard & Poor's Ratings Services announced they've placed the company's rating on CreditWatch.
Standard & Poor's credit analyst Gregoire Buet said, "We expect that this acquisition will increase Danaher's financial leverage to levels that are somewhat higher than what Standard & Poor's considers commensurate with the 'A+' rating."
The negative CreditWatch could end with the company being downgraded by one notch, said S&P.
"We could also affirm the rating after our review of the transaction and of management's long-term strategic and financial objectives. In reviewing Danaher's credit rating, Standard & Poor's will consider the potential integration risk related to the Beckman Coulter acquisition, Danaher's future growth objectives and portfolio balance, as well as its anticipated use of debt for financing future acquisitions," added the ratings agency.
Danaher currently has a "A+" corporate rating on them from S&P. The "A+" rated senior unsecured debt of the company was also placed on CreditWatch negative.
S&P said they're affirming the short-term and commercial paper ratings on the company of "A-1."
Beckman Coulter closed at $82.65, gaining $7.48, or 9.95 percent. Danaher closed at $49.03, up $1.05, or 2.19 percent.
Showing posts with label Beckman Coulter. Show all posts
Showing posts with label Beckman Coulter. Show all posts
Tuesday, February 8, 2011
Monday, February 7, 2011
Citigroup (NYSE:C) Likes Danaher (NYSE:DHR), Beckman Coulter (NYSE:BEC) Deal
The announcement by Danaher Corp. (NYSE:DHR) that they're going to acquire Beckman Coulter (NYSE:BEC) for $5.87 billion, is considered a good deal by Citigroup (NYSE:C)
Danaher Corp. is a maker of medical and industrial instruments. Beckman Coulter makes medical testing instruments for the market.
Citigroup Investment Research analyst Deane Dray said in a note to clients that the deal was a good one, citing the price as being reasonable, and it being a "nice fit" for both companies. Excluding the acquisition costs, Dray noted the deal will immediately generate profits for Danaher.
Terms of the acquisition are for Danaher to pay $83.50 for each Beckman Coulter share. Danaher valued Beckman Coulter at $6.8 billion including debt obligations and cash on hand.
The deal has to be approved by a majority of Beckman Coulter shareholders before it goes forward. Assuming that, it should close some time in the first half.
Danaher was trading at $49.09, gaining $1.11, or 2.31 percent, as of 2:57 PM EST. Beckman Coulter was trading at $82.50, gaining $7.33, or 9.76 percent.
Danaher Corp. is a maker of medical and industrial instruments. Beckman Coulter makes medical testing instruments for the market.
Citigroup Investment Research analyst Deane Dray said in a note to clients that the deal was a good one, citing the price as being reasonable, and it being a "nice fit" for both companies. Excluding the acquisition costs, Dray noted the deal will immediately generate profits for Danaher.
Terms of the acquisition are for Danaher to pay $83.50 for each Beckman Coulter share. Danaher valued Beckman Coulter at $6.8 billion including debt obligations and cash on hand.
The deal has to be approved by a majority of Beckman Coulter shareholders before it goes forward. Assuming that, it should close some time in the first half.
Danaher was trading at $49.09, gaining $1.11, or 2.31 percent, as of 2:57 PM EST. Beckman Coulter was trading at $82.50, gaining $7.33, or 9.76 percent.
Friday, December 10, 2010
Beckman Coulter (NYSE:BEC) Puts Itself on the Trading Block
Beckman Coulter (NYSE:BEC) has reportedly hired Goldman Sachs (NYSE:GS) to explore options concerning whether or not to put itself up for sale.
There are several companies and private equity firms that have shown an interest in Beckman, and while no sale is a surety, it is a very high probability.
If an offer is made for them, which is sure to come, Beckman has reserved the right to refuse any of them they deem insufficient.
While Beckman exceeded expectations in the third quarter, they have had continual quality control issues which they have said they believed to have identified, and had been working on solving them, although it'll take time to do so.
CEO Scott Garrett stepped down in September, surprising most people.
So far this year the company has dropped close to 12 percent, and closed Thursday at $57.09, down $0.34, or 0.59 percent.
There are several companies and private equity firms that have shown an interest in Beckman, and while no sale is a surety, it is a very high probability.
If an offer is made for them, which is sure to come, Beckman has reserved the right to refuse any of them they deem insufficient.
While Beckman exceeded expectations in the third quarter, they have had continual quality control issues which they have said they believed to have identified, and had been working on solving them, although it'll take time to do so.
CEO Scott Garrett stepped down in September, surprising most people.
So far this year the company has dropped close to 12 percent, and closed Thursday at $57.09, down $0.34, or 0.59 percent.
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