Danaher to Acquire Iris International

Danaher Corporation has come to an agreement to acquire Iris International Inc. for $19.50 per share in cash, representing an approximate 45 percent premium over Iris’s closing price on Sept. 14. Since then, the common stock price has risen, and as of Sept.18 is hovering around a value of $19.50. The total purchase price will be $338 million, including debt assumed and net of cash acquired.

Chatsworth, Calif.-based Iris is a manufacturer of automated in-vitro diagnostics systems and consumables. Upon closing, the company will become part of Danaher’s Beckman Coulter diagnostics business.

Iris chalked up a total revenue of $118.3 million in 2011, and the company projects a 9 percent increase for 2012.

An affiliate of Danaher is expected to commence a tender offer for all of Iris’s outstanding common stock within the next seven days, and the offer will remain open for a minimum of 20 business days following its commencement.

The Iris board of directors has unanimously recommended that Iris shareholders accept and tender their shares into the offer. The offer is subject to customary conditions, including tender of a majority of the outstanding shares into the offer (on a fully diluted basis), receipt of applicable regulatory approvals and the absence of a material adverse change with respect to Iris. The merger is expected to be completed during the fourth quarter of 2012.

“The board of directors voted unanimously to accept Danaher’s proposal as it provides for an immediate compelling cash premium realization for our shareholders,” said César M. García, chairman, president and CEO of Iris. “Further, Iris will benefit from being a part of a larger organization with significant resources to enable the acceleration of its diversified product pipeline strategy.”

Washington, D.C.-based Danaher is a science and technology company that designs, manufactures, and markets products for a variety of industries including medical devices.

Beckman Coulter, which is owned by Danaher, develops, manufactures and markets products for biomedical testing. Its diagnostics headquarters are in Brea, Calif.