How Will Danaher (DHR) Stock React Today To $2.2 Billion Nobel Biocare (NBHGY) Deal?

NEW YORK (TheStreet) -- Danaher Corp.  (DHR) , a U.S. healthcare group, will pay $2.2 billion to buy Switzerland's Nobel Biocare Holding  (NBHGY)  and become the world's biggest player in a dental implants market benefiting from a recovering global economy, Reuters reports.

Danaher said today it would pay 17.10 Swiss francs per Nobel Biocare share in cash, about 23% above Nobel Biocare's closing price on July 28, the day before the Swiss firm said it was in talks with potential buyers, Reuters said.

However, Nobel Biocare shares slid as much as 6% after analysts had predicted the company could get over 20 francs per share.

 

Shares of Danaher closed Friday at $76.88.

TheStreet Ratings team rates DANAHER CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate DANAHER CORP (DHR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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