WASHINGTON, D.C., December 12, 2011 -Danaher Corporation (NYSE:DHR) announced today that it has signed a definitive agreement to sell its Kollmorgen Electro-Optical (KEO) business to L-3 Communications (NYSE: LLL), a prime contractor, and a leading provider of a broad range of electronic systems used on military and commercial platforms. Danaher's KEO business designs and manufactures periscope and optronic mast systems.
Upon closing, L-3 will pay Danaher an aggregate cash purchase price of $210 million, subject to certain adjustments. In 2010, the KEO business had revenues of approximately $169 million.
Given the recently announced divestiture of Accu-Sort Systems Inc. (Accu-Sort), both KEO and Accu-Sort will be treated as discontinued operations for financial reporting purposes beginning in the fourth quarter of 2011. Combined, KEO and Accu-Sort, are expected to contribute $0.01 to Danaher's diluted earnings per share in the fourth quarter of 2011 and $0.04 to diluted earnings per share in 2011.
The closing of the definitive agreement to sell KEO and the closing of the definitive agreement to sell Accu-Sort are each subject to customary conditions, including regulatory approvals and the absence of a material adverse effect. The parties currently expect that both the KEO and Accu-Sort transactions will close in the first quarter of 2012.
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Danaher is a science and technology leader that designs, manufactures, and markets innovative products and services to professional, medical, industrial, and commercial customers. Our premier brands are among the most highly recognized in each of the markets we serve. The Danaher Business System provides a foundation to our 59,000 associates around the world, serving customers in more than 125 countries. In 2010, we generated $12.8 billion of revenue. For more information please visit our website: www.danaher.com.
Statements in this release that are not strictly historical, including the statements regarding the planned divestitures of the KEO and Accu-Sort businesses, the timing of the divestitures and the anticipated fourth quarter and full year 2011 diluted earnings per share contributions from each business are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things, uncertainty in the economy and financial markets, conditions affecting the respective industries in which the KEO and Accu-Sort businesses operate, the uncertainty of regulatory approvals, the ability of the respective parties to the divestitures to satisfy the applicable closing conditions and consummate each such transaction, and international economic, political, legal and business factors. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2010 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2011. These forward-looking statements speak only as of the date of this release and the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
Matt R. McGrew
Vice President, Investor Relations
2200 Pennsylvania Ave, NW
Washington, D.C. 20037
Telephone: (202) 828-0850
Fax: (202) 828-0860