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Danaher's Subsidiary Envista Prices IPO, to Trade as NVST

Zacks Equity Research

Danaher Corporation DHR yesterday announced that its dental subsidiary, Envista Holdings Corporation, priced its initial public offering of common shares at $22.00 per share. Subject to the fulfillment of closing conditions, the offering will close on Sep 20, 2019.

It is worth mentioning here that Danaher announced about this plan for initial public offering of Envista in June this year. Yesterday, Danaher’s share price increased 1.19%, closing the trading session at $142.33.

Inside the Headlines

The share offering comprises approximately 26.8 million common shares of Envista. Gross proceeds (before deduction of any expenses related to underwriting and offering) of roughly $588.9 million are anticipated from this offering. Danaher will be awarded the consideration, after payment of related expenses as part payment for its dental assets.

Also, the underwriters have been provided with an option to purchase an additional 4 million shares within 30 days. The purchase price for the underwriters will be adjusted for commissions and underwriting discounts.

Envista shares, under the ticker symbol “NVST”, will trade on the NYSE. Danaher’s shares in Envista will be roughly 82.7% or 80.6%, provided overallotment option is completely used by the underwriters.

Brief on Envista

Envista consists Danaher Dental segment's three operating businesses — Nobel Biocare Systems, Ormco and KaVo Kerr. These businesses specialize in dental equipment, orthodontics, dental implants and consumables. Some notable brands are Nobel Biocare, Kerr, i-CAT, KaVo, Dexis, Pelton & Crane, Metrex, Ormco, Implant Direct, and Orascoptic.

Envista provides services to dentists (more than one million) in as many as 150 countries. It employs 12,000 people.

Zacks Rank, Earnings Estimates and Price Performance of Danaher

With a market capitalization of approximately $100.9 billion, Danaher currently carries a Zacks Rank #2 (Buy). In the past 60 days, the Zacks Consensus Estimate for its earnings has risen 0.2% to $4.79 for 2019 and 4.1% to $5.59 for 2020.

Danaher Corporation Price and Consensus


Danaher Corporation Price and Consensus
Danaher Corporation Price and Consensus

Danaher Corporation price-consensus-chart | Danaher Corporation Quote

The company’s share price has increased 38.1% so far in 2019 compared with the industry’s growth of 19.9%.

Stocks to Consider

Three other top-ranked stocks in the industry are Federal Signal Corporation FSS, Carlisle Companies Incorporated CSL and United Technologies Corporation UTX. While Federal Signal currently sports a Zacks Rank #1, Carlisle Companies and United Technologies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, earnings estimates for 2019 have improved for these companies. Further, earnings surprise in the last reported quarter was positive 19.57% for Federal Signal, 11.02% for Carlisle Companies and 7.84% for United Technologies.

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