Science and technology conglomerate Danaher Corp. (DHR) said Monday that it has agreed to acquire diagnostics company Iris International Inc. (IRIS) for about $338 million, including debt assumed and net of cash acquired. Shares of Iris are gaining more than 45 percent following the announcement.
Washington, D.C.-based Danaher will make a cash tender offer to acquire all of the outstanding shares of Iris common stock for $19.50 per share. The offer price represents a premium of 45.3 percent to Iris's closing stock price on Friday of $13.42 per share.
Chatsworth, California-based Iris is a maker of automated in-vitro diagnostics systems and consumables. An affiliate of Danaher is expected to commence a tender offer for all of Iris's outstanding common stock within the next seven days. The tender offer will remain open for a minimum of 20 business days following its commencement.
Iris's board of directors has unanimously recommended its shareholders to accept and tender their shares into the offer. The transaction is expected to be completed during the fourth quarter of 2012. Upon closing, the company will become part of Danaher's Beckman Coulter Diagnostics business.
Cesar Garcia, Chairman, President and Chief Executive Officer of Iris International said, "The Board of Directors voted unanimously to accept Danaher's proposal as it provides for an immediate compelling cash premium realization for our shareholders. Further, Iris will benefit from being a part of a larger organization with significant resources to enable the acceleration of its diversified product pipeline strategy."
In late July, Danaher reported a decline in net earnings for the second quarter to $600.15 million or $0.84 per share from $648.76 million or $0.94 per share in the year-ago quarter. Revenues for the quarter grew 25 percent from last year to $4.55 billion.
On the other hand, Iris in late July reported a profit for the second quarter of $1.21 million or $0.07 per share, compared to loss of $0.34 million or $0.02 per share in the prior-year period. Revenue for the quarter rose 2 percent to $30.91 million.
DHR closed Friday's regular session at $54.76, down $0.65 on a volume of 4.83 million shares.
IRIS closed Friday's trading at $13.42. In Monday's pre-market, the stock is adding $6.09 or 45.58 percent to $19.45.
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