This article is provided to FT.com readers by mergermarket—a news service focused on providing actionable, origination intelligence to M&A professionals. www.mergermarket.com
In an effort to streamline its exposure to the aerospace and defense sector, Danaher (NYSE:DHR) is selling its Pacific Scientific subsidiary, three sources familiar with the situation told mergermarket.
According to one of the sources, the Washington, DC-based conglomerate hired Goldman Sachs as its financial advisor for the divestiture.
Danaher did not return calls for comment while Goldman Sachs declined comment on market rumors or speculation.
A teaser on Pacific Scientific has been out for approximately two weeks, the second source claimed, adding that a preliminary proposal on the business is due within the next week.
A limited number of parties, believed to be entirely strategic, were contacted in relation to the divestiture, said the first source. The two additional sources said financial sponsors would be interested in the Danaher division, speculating that private equity suitors may be contacted if the process widens.
The second source said Pacific Scientific has EBITDA of approximately USD 130m, adding that the business could command a multiple in the ballpark of 8x EBITDA. This source characterized Pacific Scientific as a “hodge podge” of different businesses including aerospace and defense assets as well as fire safety equipment.
Potential buyers for Pacific Scientific could include actuation companies such as Parker Hannifin (NYSE:PH), Honeywell (NYSE:HON), Eaton (NYSE:ETN), Moog (NYSE:MOG.A), Curtiss-Wright (NYSE:CW) and Woodward Governor (NASDAQ:WGOV), said the third source.
For more information or to inquire about a trial please email firstname.lastname@example.org or call EMEA: + 44 (0)20 7059 6105 Americas: +1 212 686-5277 Asia-Pacific: +852 2158 9730
Get alerts on Washington when a new story is published