Danaher announced its plans to buy Pall Corp., a leading air and water-filter maker, in a $13.8 billion cash deal. Danaher, built by brothers Steven Rales and Mitchell Rales, also announced plans to split its global empire into two listed companies, once the acquisition is completed.
Since the 1980s, the Rales Brothers have successfully built a huge industrial empire by using their financial skills in acquiring and restructuring businesses in diverse sectors such as design, industrial manufacturing, biotechnology and water technology. According to Forbes, Steven Rales, who serves as Danaher’s chairman, is worth $4 billion and Mitchell Rales is worth $3.7 billion.
The Rales Brothers now plan to split Danaher – a tax-free separation, creating a technology company with an estimated annual revenue of $16.5 billion. This science and technology company will retain Danaher’s name. The industrial division will be reconstituted as a separate listed company with an expected revenue of $6 billion.
Both Danaher and Pall Corp. shares rose to record highs this week at New York Stock Exchange after news of the deal reached the markets. The mega-deal did not come as a surprise to many market observers. Investors were expecting Rales brothers to go for a big acquisition for some time now. Danaher also hopes to save $300 Million in synergies over the next years through the acquisition.
The acquisition of Pall Corp. will help Danaher to enter the fast growing biopharmaceuticals business. Danaher is reportedly financing the $13.8 billion deal with its own cash and new debts. The company has announced four aggressive deals since Thomas Joyce, Jr. took over as company’s CEO in September last year.