- The Washington Times - Thursday, September 3, 2009

NEW YORK | Danaher Corp., widely known for its Craftsman hand tools, on Wednesday unveiled a strategic expansion of its medical technology and professional instrumentation business, even as it shrinks other operations.

Danaher Corp. said it will buy a global provider of medical instruments to analyze molecules and shed about twice as many existing jobs and plants as previously announced.

Over the past year, the District-based company’s industrial and tools segment has contributed a proportionately smaller part of total sales, compared with its professional instrumentation and medical technology businesses.

On Wednesday, Danaher said it will pay $1.1 billion, including debt, for two businesses, Applied Biosystems /MDS Sciex, a mass-spectrometry business, plus a bioresearch and analytical instrumentation company owned by MDS Inc.

Mass spectrometry is a technique widely used in medical research in determining what elements make up a molecule.

MDS, based in Mississauga, Ontario, will distribute most of its sale proceeds to shareholders and then focus on radiotherapeutics and sterilization technologies.

Carlsbad, Calif.-based Life Technologies Corp., which is a half-owner of Applied Biosystems/MDS Sciex, will increase its focus on genomic medicine.

The amount of debt being assumed in the transactions, set for completion by the end of this year, was not immediately available.

Danaher will run the acquired businesses in its medical-technologies segment, with yearly revenue rising by $650 million and earnings per share next year increasing by at least 5 cents per share.

Also Wednesday, the company virtually doubled the number of jobs and facilities it aims to shed. Danaher, which employs about 50,000 people, said it now aims to cut about 3,300 existing jobs and close 30 facilities.

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