Danaher Confirms Beckman Layoffs
In June, Danaher acquired Beckman Coulter for $5.5 billion in cash and assumed Beckman Coulter’s $1.6 billion debt. Pro forma combined 2010 revenues were $16.5 billion, with a pro forma combined operating profit of $2.5 billion. Danaher preliminarily recorded $3.6 billion of goodwill in connection with the purchase. An extensive restructuring of Beckman Coulter was expected as Danaher applies its Danaher Business System to the company to increase profitability. In August, Beckman Coulter received another warning letter from the FDA regarding GMP practices at its California plant that manufactures regulated diagnostic devices and reagents.
Wood Dale, IL 9/9/11—At its analysts meeting this month, Danaher confirmed that its plans to lay off 1,000 employees at recently acquired Beckman Coulter (see IBO 2/15/11) as part of a significant restructuring effort at the business. At the end of 2010, Beckman Coulter had 11,900 employees. Danaher stated when it announced its plans to purchase the company that it expected to record $250 million in cost savings. Danaher completed the acquisition in June. Danaher also announced at the meeting that, separate from the Beckman reorganization, it is undertaking a company-wide restructuring plan starting in the fourth quarter, with a goal of $50 million in savings.
