Danaher To Acquire Tektronix For $2.8 Billion

Danaher Corp., Washington, D.C., has agreed to buy Tektronix, Inc., Beaverton, Ore., in a deal valued at $2.8 billion.

Tektronix would become part of Danaher’s Electronic Test platform, joining its Everett-Wash.-based Fluke and Fluke Networks businesses, and nearly doubling the platform’s revenues. Fluke is the largest manufacturer of test equipment in the electrical market.

With annual revenues of approximately $1.1 billion, Tektronix is a supplier of high-end test, measurement, and monitoring products and services for engineers in the communications, computer, consumer electronics and education industries, as well as in military/aerospace, semiconductor and a range of other industries worldwide.

The acquisition is expected to have minimal overlap at Fluke or Fluke Networks, according to industry sources. While both companies make oscilloscopes, Tektronix makes bench oscilloscopes and Fluke makes hand-held oscilloscopes. “They are made for a different audience,” said one source.

Tektronix manufactures high-end test equipment outside the range of test equipment sold in the electrical wholesaling industry. One source said if you want a Tektronix spectrum analyzer, you probably wouldn’t find one at your typical electrical supply house.

Danaher’s president and CEO, H. Lawrence Culp Jr., said, “With its well recognized brand, significant global reach and broad-based expertise in providing solutions for end-users in research and product development for high-growth industries, we believe Tektronix provides an excellent complement to our existing electronic test business. We have long admired Tektronix’s product innovation and excellent reputation. Through the application of the Danaher business system we believe we can continue to deliver strong results in our established businesses and look at attractive adjacent markets for future growth opportunities.”

Danaher’s business activities encompass four reporting segments and are comprised of six strategic platforms: medical technologies, professional instrumentation (environmental, electronic test), industrial technologies (motion, product ID, focused niche businesses) and tools and components (mechanic’s hand tools). Danaher had 2006 revenues of $9.6 billion.

The company continues to grow the conglomerate through strategic acquisitions and divestitures. In July, Danaher bought Glen Allen, Va.-based water treatment company ChemTreat Inc. for $425 million in cash. During the same month it sold its Joslyn Hi-Voltage and Power Solutions to Thomas & Betts Corp. for $275 million.

The Tektronix transaction is expected to be completed in the fourth quarter of 2007.