Publications
Publications
- February 2015
- HBS Case Collection
Beckman Coulter, 2011
By: John R. Wells and Galen Danskin
Abstract
In early 2011, Danaher was contemplating the acquisition of Beckman Coulter. With $3.7 billion of revenues in 2010 and $431 million in operating profits, California-based Beckman Coulter was a global leader in blood cell count diagnostic systems and also supplied a wide range of clinical research equipment. The USA accounted for 46% of sales. The company had delivered almost 7% growth in revenues and earnings for over a decade, but 2010 had been fraught with problems. Two earnings warnings, a recall of an important blood test, and a dispute with the Federal Drug Administration over regulatory approval were all weighing on the company. In September 2010, the stock price hit a low of $48, down from a 2009 high of $60, valuing the business at $4.0 billion. The CEO resigned. In December, the company announced that it had put itself up for sale; the stock price jumped to $72, suggesting that the markets expected a suitor to pay in the region of $6 billion. Interest was indeed high with a number of trade investors, including Danaher, vying with private equity groups for the company. Danaher's CEO, Larry Culp, had to decide whether it made sense to bid and, if so, at what price.
Keywords
Citation
Wells, John R., and Galen Danskin. "Beckman Coulter, 2011." Harvard Business School Case 715-043, February 2015.