To build market share in the growing market for non-contact infrared thermometers, Danaher Corp., Wash., the parent of Fluke Corp., has agreed to buy Raytek Corp., Santa Cruz, Calif., for about $75 million.
Raytek, with 2001 revenues exceeding $50 million, is a U.S. producer of non-contact infrared thermometers for industrial, maintenance, and quality control applications where temperature is a critical parameter. Users can measure an object's temperature remotely just by pressing a button and aiming the laser beam at the object. The devices have applications in a broad range of markets, but in the electrical industry they have become popular with end users to measure the temperature of motor bearings, lighting fixtures mounted on high ceilings and wire and cable.
Fluke and Raytek had a previous relationship where Raytek private labeled three of its non-contact infrared thermometers for Fluke. If the acquisition goes through, Fluke will then be acquiring a much broader line of these products. Raytek manufactures both hand-held portable infrared thermometers as well as fixed-mount thermometers, line scanners and sensors, and markets its products in more than 60 countries worldwide.
“Raytek is known as a global leader in portable non-contact infrared tools worldwide, and is an excellent extension of Danaher's market leadership,” said H. Lawrence Culp Jr., president and chief executive officer of Danaher Corp. “The Fluke and Raytek brands represent technical leadership in hand-held digital diagnostic tools and are driven to serve end users with the best products and application support. The combination of Fluke and Raytek will increase our ability to reach and serve global customers through superior selling, support and distribution capabilities.”
The closing of the transaction is subject to certain customary conditions and is expected shortly. Danaher expects the acquisition to be neutral to Danaher's 2002 earnings per share.
Fluke and Fluke Networks, a sister company, has bought several large companies in recent years. In May 2002, Fluke expanded in metering equipment for the three-phase segment of the power quality market by announcing an agreement to buy Reliable Power Meters, Los Gatos, Calif. In 2001, Fluke Networks continued to expand into the fast-growing voice/data market with its purchase of Fotec Inc., Medford, Mass. Fotec provides fiber-optic test equipment and structured cabling education. In 2001, Fluke Networks also purchased Microtest Inc., Phoenix, one of the largest independent test equipment manufacturers in the United States. Microtest manufactures network test and measurement products and sells them worldwide.