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Danaher to buy color specialist X-Rite

By dpreview staff on Apr 12, 2012 at 18:12 GMT

Technology and engineering company Danaher has agreed to buy color specialist X-Rite, for around $625M. X-Rite, which includes the GretagMacbeth and Pantone brands, has color matching products across a variety of industrial sectors, including medical, textiles and beauty products as well as photography and print production. Danaher says the purchase will complement its Esko packaging and print, and Videojet product coding and marking businesses. X-Rite will continue to operate as a stand-alone company within Danaher's Industrial Technologies group.


Press Release:

X-Rite Announces Agreement for Danaher to Acquire Company for $5.55 per Share

GRAND RAPIDS, Mich., April 10, 2012 – X-Rite, Incorporated (NASDAQ:XRIT) today announced that it has signed a definitive merger agreement with Danaher (NYSE: DHR) under which Danaher will acquire the company for $5.55 per share in cash, or a total of approximately $625 million including the assumption of debt, net of cash.  The transaction was unanimously approved by the X-Rite Board of Directors.

The cash tender offer of $5.55 per share is expected to commence within 5 business days.  This offer represents a premium of 39% over X-Rite’s closing share price of $4.00 on April 9, 2012, the last trading day prior to the announcement.  Certain stockholders representing approximately 68% of the voting power of X-Rite’s outstanding shares intend to tender their shares into the offer.

Thomas J. Vacchiano Jr., X-Rite’s Chief Executive Officer said, “Joining Danaher enhances X-Rite’s ability to achieve our growth goals while realizing a significant and immediate all-cash premium for X-Rite stockholders.  Danaher’s global scale, market presence and resources will allow X-Rite to accelerate our growth, particularly for our key strategic initiatives like PantoneLIVE and Appearance solutions.  As part of Danaher, X-Rite will be able to expand our access to new markets and complementary technologies.”

Upon completion of the transaction, X-Rite, headquartered in Grand Rapids, Michigan, will operate as a stand-alone company within Danaher’s Product Identification group which is a part of their Industrial Technology Segment.  X-Rite’s existing management team will continue to hold key senior leadership positions at the Company following the close of the transaction.  X-Rite will continue to do business under its existing X-Rite, Pantone and other leading brands.

Vacchiano continued, “Our commitment to our customers, employees, partners and local communities remains unchanged.  We expect X-Rite customers and employees to benefit from our being part of a larger, stronger company focused on growth and innovation and which shares our passion for retaining, developing and recruiting the best talent available.”

The transaction is subject to regulatory approval and customary closing conditions. It is expected to close during the second quarter of 2012.

Centerview Partners acted as financial advisor to X-Rite and Winston & Strawn LLP served as legal advisor to X-Rite.

Comments

Total comments: 13
LarryK
By LarryK (Apr 14, 2012)

Didn't X-Rite just announce an update to the Eye 0ne Pro Series the other day? Interesting timing.

Since X-Rite snapped up Pantone and Gretag MacBeth, I guess it's only fair they got swallowed by a bigger fish. X-Rite always seemed moribund anyway, so the dynamic of their strategy was never clear to me.

0 upvotes
Rex Larsen
By Rex Larsen (Apr 14, 2012)

You're right, Martin
One hundred dollars for a product, including software, that provides consistent, high-quality color every time, and is easy to use ! Who would want that ?

I'll never pay more than $95.00 for that piece of plastic !

I'm going to buy the one that you make for $9.00

0 upvotes
Guillermo Shashte
By Guillermo Shashte (Apr 13, 2012)

Acquisition = Higher prices (discontinued products, paid updates, paid support, lower quality, etc.)

0 upvotes
gldaniels
By gldaniels (Apr 13, 2012)

With all due respect to CaseyComo and his/her spouse, my experiences working for a Danaher company have been quite different. I have worked for the same company for over 26 years, and we were purchased by Danaher a few years ago. Since our acquisition by Danaher, we have actually grown our business in both dollar volume, market share and profitability. As a result, our head count has increased dramatically, including promoting from within and recruiting new employees. Danaher has not meddled in our day to day business. Instead, we have implemented the sound Danaher business practices that focus mostly on honesty and integrity in dealing with customers, suppliers and employees. Danaher's remarkable record of growing companies over the long haul, NOT buying, trashing, and selling them, accounts for the continual success of Danaher. I hope the people at X-Rite experience the same positive results that my company has enjoyed. Also, best wishes to Casey's spouse.

1 upvote
CaseyComo
By CaseyComo (Apr 13, 2012)

Maybe it depends on the co and what was going on at the time of the acquisition. Ours experience was kind of through-the-looking glass. I hope this one goes well for everyone.

0 upvotes
Hitthespot
By Hitthespot (Apr 19, 2012)

From what Kool-Aid cooler have you been drinking. Danaher spends very little money on R&D. They just drain every drop of money they can out of the companies they purchase. When they figure they drained every dime they can out of them, they sell them. Not to mentions the thousands upon thousands of people they've laid off. You want a good investment, buy Danaher stock, you want a good job, run for hills. I've worked for two Danaher companies and people are treated horrible. You can never work fast enough or hard enough.

0 upvotes
uuronl
By uuronl (Apr 13, 2012)

If your company makes money, Danaher leaves you alone. Very much alone which is nice.

They also own Leica Microsystems. No one has complained about that arrangement that I'm aware of.

0 upvotes
CaseyComo
By CaseyComo (Apr 13, 2012)

Worrisome. My spouse worked for a company that was acquired by Danaher. They are strictly an operations-focused holding company, that prizes reduction in overhead and letting go of all of the higher-paid folks to maximize the numbers before moving on the next acquisition. Think of the boss in Office Space and you will have a good pic of what a Danaher person is like.

0 upvotes
Martin Ocando
By Martin Ocando (Apr 13, 2012)

I hope they bring the passport to a more sane price level. A hundred bucks for a piece of plastic with color patches in it? Gimme a break!!!

0 upvotes
raincoat
By raincoat (Apr 13, 2012)

yeah,I can print color patches on my inkjet for $0.05!
oh wait, you want accurate colors that don't fade?

0 upvotes
Sordid
By Sordid (Apr 14, 2012)

Still not worth a hundred bucks if you were honest.

0 upvotes
steve_hoge
By steve_hoge (Apr 12, 2012)

Great, another raft of expensive colorimetric tools and software likely to be end-of-lifed...

0 upvotes
Amateur Hour
By Amateur Hour (Apr 12, 2012)

Hmm - a good match for Danaher, they're very much into the test and measurement business.

0 upvotes
Total comments: 13