WASHINGTON, D.C.—Danaher Corp announced its intention to separate its Environmental & Applied Solutions segment to create an independent, publicly traded company. The new company will be comprised of Danaher’s Water Quality and Product Identification businesses and will be referred to as “EAS” until it is named at a later date. The transaction is intended to be tax-free to Danaher shareholders and expected to be completed in the fourth quarter of 2023.
“With today’s announcement, Danaher will become a more focused science and technology leader committed to innovation and making a profound impact on human health,” said Rainer M. Blair, president and CEO.
“We believe that EAS will be advantaged as a standalone company with greater opportunities to pursue high-impact organic and inorganic investments,” Blair continued. “The combination of a resilient business model—with more than 50 percent recurring revenue—and a talented team with a foundation built on the Danaher Business System will position EAS to continue delivering the same outstanding results it has as part of Danaher.”
Blair concluded, “This is an important milestone for both Danaher and EAS and demonstrates our commitment to maximizing long-term value for all of our stakeholders.”
Jennifer L. Honeycutt will become president and CEO of EAS upon completion of the transaction. Honeycutt joined Danaher in 1999 via the acquisition of Hach and she currently serves as a Danaher EVP with responsibility for the Environmental & Applied Solutions segment. Honeycutt has extensive mergers and acquisitions experience and brings a strong operational track record to EAS, having overseen accelerated business performance at several Danaher operating companies.
“I am honored and humbled to be selected to lead EAS as a standalone public company,” said Honeycutt. “As a leading water quality and product identification franchise we will be well-positioned to pursue our strategic priorities and create long-term value for our shareholders, customers and associates. We have an outstanding team that is committed to executing with the Danaher Business System and building upon our culture of continuous improvement. I look forward to leading the team through this transition and toward our opportunities ahead.”
Danaher is targeting to complete the separation in the fourth quarter of 2023, subject to the satisfaction of customary conditions, including obtaining final approval from the Danaher Board of Directors, satisfactory completion of financing, receipt of tax opinions, receipt of favorable rulings from the Internal Revenue Service and receipt of other regulatory approvals.
EAS will have leading positions and outstanding brands in the areas of water quality and product identification. EAS will be comprised of Danaher’s current Environmental & Applied Solutions segment operating companies including Hach, ChemTreat, Trojan, OTT and McCrometer in Water Quality and Videojet, X-Rite Pantone, Esko and Linx in Product Identification. The segment generated revenue of approximately $4.7 billion in 2021 and has a global team of approximately 16,000 associates united by a common culture and operating system, with the Danaher Business System as its foundation. As a standalone entity EAS is expected to have an investment-grade credit rating.