Danaher (DHR) to Acquire Abcam, Boost Life Sciences Unit
Danaher Corporation DHR has entered into a definitive agreement to acquire Abcam plc (ABCM) for approximately $5.7 billion (including assumed indebtedness and net of acquired cash). The deal value is equivalent to $24 per share. Following this news, shares of DHR gained 2.3% at the close of business on Aug 28.
Headquartered in Cambridge, UK, Abcam is a global supplier of protein consumables. The company offers highly validated antibodies, reagents, biomarkers and assays that are required for accelerating drug discovery, life sciences research, and diagnostics.
Following the acquisition, Abcam is expected to operate as a standalone company within Danaher's Life Sciences segment.
Danaher Corporation Price
Danaher Corporation price | Danaher Corporation Quote
In the second quarter of 2023, DHR’s Life Sciences segment generated revenues of $1,796 million, up 5.5% year over year. Core sales grew 5.5% year over year. Acquisitions boosted sales by 1%, while unfavorable foreign-currency translations lowered sales by 1%.
Abcam's long track record of innovation, outstanding product quality and breadth of antibody portfolio are expected to help Danaher solve some of the world's greatest healthcare challenges.
Subject to customary closing conditions, the acquisition is expected to close in mid-2024. Danaher expects to use cash on hand and proceeds from the issuance of commercial paper to fund the transaction.
While Danaher presently carries a Zacks Rank #4 (Sell), Abcam currently holds a Zacks Rank #2 (Buy).
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