NEW YORK (TheStreet) -- Shares of Danaher Corp. (DHR) are higher by 3.01% to $88.59 in mid-morning trading on Wednesday, after the global science and technology innovation company announced its plan to acquire the water filtration systems maker Pall Corp. (PLL) for approximately $13.8 billion
"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," Danaher CEO Thomas Joyce Jr. said in a statement announcing the acquisition.
Additionally, today Danaher announced its intention to split into two independent publicly traded companies. The transaction will create a science and technology growth company retaining the Danaher name and including the Pall deal.
The second company will be a diversified industrial growth company ("NewCo").
"This is an exciting day for Danaher and an important step in our company's history. Danaher has always been at its best when all platforms have the ability to invest in the highest impact organic growth opportunities, pursue meaningful acquisitions and use the Danaher Business System to continuously improve performance," Joyce said.
"The pending strategic acquisition of Pall Corporation announced today offers us the unique opportunity to drive greater shareholder value going forward as two stronger and better companies," Joyce added.
Separately, 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 solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."