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Danaher Corp said on Wednesday it would separate its environmental & applied solutions (EAS) segment to pivot growth towards the medical technology firm’s life sciences and diagnostics businesses.
Danaher insider Jennifer Honeycutt, who joined the company in 1999, will become the president and chief executive officer of the new publicly traded company after the transaction closes in the fourth quarter of 2023.
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Shares of Danaher rose nearly 5% in after-market trading. The stock has lost about 14% so far this year.
Danaher, which currently has a market capitalization of more than $200 billion, is the third large conglomerate this year to announce a spin-off after Kellogg Co and 3M Co.
“With today’s announcement, Danaher will become a more focused science and technology leader,” Chief Executive Rainer Blair said in a statement.
The EAS business, which has a global workforce of 16,000, offers water quality and product identification solutions including consumer packaging and drinking water purification to a wide range of sectors such as industrial and pharmaceutical.
In 2021, the EAS unit generated revenue of about $4.7 billion, while Danaher’s total revenue increased 32% to $29.5 billion.
Danaher said it expects the transaction to be tax-free to its shareholders. (Reporting by Manya Saini in Bengaluru; Editing by Maju Samuel)