Danaher Corporation (DHR - Free Report) announced that it successfully closed the offering of preferred and common shares to the public. The offering announcement was made on Feb 25, 2019.
It is worth noting here that this conglomerate signed an agreement to acquire General Electric Company’s (GE - Free Report) BioPharma business for $21.4 billion on Feb 25. Since then, the company’s shares have increased roughly 3.8%, ending the trading session at $127.77 on Mar 1.
As noted, Danaher issued 12.1 million of common shares — inclusive of 1.1 million shares sold to the underwriters — for $123.00 per share. In addition, 1.65 million of 4.75% Series A mandatory convertible preferred stocks — including 150,000 shares sold to underwriters — were sold at $1,000 per share.
The company secured net proceeds of $1.44 billion from common shares offerings and $1.60 billion from the issuance of preferred stocks. These proceeds are net of discounts and issuance-related costs.
Danaher intends to use proceeds from these issuances to fund the acquisition of the BioPharma business — part of General Electric’s GE Life Sciences business. However, if this acquisition does not materialize, the company might use net proceeds from the offering for funding its general corporate purposes.
The BioPharma buyout — anticipated to be completed in the fourth quarter of 2019 — will be integrated with Danaher’s Life Sciences segment and will complement the company’s biologics workflow solutions. The buyout is anticipated to boost non-GAAP adjusted earnings by 45-50 cents per share in the first year of the completion of the deal.
Zacks Rank and Stocks to Consider
With a market capitalization of approximately $79.5 billion, Danaher currently carries a Zacks Rank #3 (Hold). In the past 30 days, the Zacks Consensus Estimate for earnings has remained unchanged at $4.78 for 2019.
Danaher Corporation Price and Consensus