Why Danaher Is Relatively Immune from Growth Concerns in China
Organically, Danaher (DGR) has grown at a CAGR of roughly 10% in China over the last five years. Approximately 50% of the company’s revenues in China are derived from its Diagnostics segment.
A Look at Danaher’s 4Q16 Margin Estimates
In 4Q15, Danaher’s (DHR) adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) was ~$1.4 billion, while its EBITDA margin was 23.3%.
How Cepheid Fits Strategically into DHR’s Portfolio
The acquisition of Cepheid (CPHD) in the strategic sense is a gateway for Danaher (DHR) to breathe life into its limited molecular testing capabilities.
DHR to Reap $200 Million in Cost Synergies, Revenue through Buy
Danaher (DHR) says it has identified $100 million in cost synergies and another $100 million in revenues over the next five years.
What Made Cepheid Attractive to Danaher?
On September 6, 2016, Danaher (DHR) announced that it has entered into a definitive agreement to acquire Cepheid (CPHD) for $4 billion.
Cepheid’s Revenue and Income Fell in 3Q15
After its 3Q15 earnings report, Cepheid fell by 0.86% to close at $32.25 per share as of October 20, 2015, with a 4.8% fall in revenue in 3Q15.