Danaher to acquire water solution developer Pall for $13.8bn

US based industrial and healthcare equipment manufacturing firm Danaher has agreed to buy water systems manufacturer Pall for $13.8bn.

Following the merger agreement with Pall,Danaher has also said that it will split into two separate entities, one science and technology company and one industrial company.

Pall’s operations will be a part of its science and technology unit, Danaher said.

The deal is subject to customary conditions and awaits approval from Pall’s shareholders, receipt of applicable regulatory approvals and absence of a material adverse effect on Pall.

Expected to be concluded by the end of this year, the transaction will be financed primarily with available cash and proceeds from the issuance of debt or new credit facilities.

New York based Pall is a manufacturer for filtration, separation and purification solutions for airplane manufacturers, public works firms, food and beverage companies, medical end markets, and notably, biopharmaceuticals.

Danaher president and CEO Thomas P. Joyce, Jr. said: "Pall is a highly attractive business, with approximately 75% recurring revenues, mid-single digit organic growth and a solid margin profile. Its best-in-class technology, combined with the broadest, most technically-advanced solutions, make it the premier brand in the filtration industry.

"Pall will provide us a leading business with significant runway for expansion and strengthens our life sciences position in the strategically-attractive, high-growth biopharmaceutical market.

"With the Danaher Business System as a foundation, Pall associates will have the tools to accelerate new product development and improve operational efficiency in the years to come."