Fortive to Acquire Landauer for $67.25 Per Share, or Approximately $770 Million
06 September 2017 - 10:00PM
Business Wire
Fortive Corporation (NYSE: FTV) announced today that it has
entered into a definitive merger agreement with Landauer (NYSE:
LDR), pursuant to which Fortive will acquire Landauer by making a
cash tender offer to acquire all of the outstanding shares of
Landauer’s common stock for $67.25 per share, for a total
enterprise value of approximately $770 million including
assumed indebtedness and net of acquired cash.
Landauer is a leading global provider of subscription-based
technical and analytical services to determine occupational and
environmental radiation exposure, as well as a leading domestic
provider of outsourced medical physics services. Headquartered in
Glenwood, Illinois, Landauer generated annual revenues of $143
million in 2016, and greater than 80% of these revenues were
considered by Landauer to be recurring. Upon closing of the
acquisition, Landauer will become part of Fortive’s Field
Solutions platform (comprising Fluke, Qualitrol and Industrial
Scientific) within Fortive’s Professional Instrumentation segment.
Fortive completed the previously-announced acquisition of
Industrial Scientific on August 25, 2017.
James A. Lico, Fortive’s President and Chief Executive Officer,
stated, “As a recognized leader in personal and environmental
radiation measurement and monitoring and outsourced medical physics
services, Landauer is expected to strengthen our
safety-as-a-service position and improve our recurring revenue,
growth and margin profile."
Lico continued, "Through application of the Fortive Business
System, we believe that we will drive both accelerated growth and
synergies within our Field Solutions Platform. We look forward to
welcoming the Landauer team to Fortive."
The acquisition has been unanimously approved by the Board of
Directors of each company, and the Landauer Board of Directors has
unanimously recommended that Landauer shareholders tender their
shares into the offer. The offer is subject to customary
conditions, including, among others, the tender of a majority of
the outstanding shares into the offer (on a fully diluted basis)
and receipt of applicable regulatory approvals. A certain
stockholder representing approximately 5% of Landauer's outstanding
shares has indicated they intend to tender their shares into the
offer. The transaction is expected to be completed by the end of
2017.
Fortive expects to finance the transaction with available cash
and credit.
ABOUT FORTIVE
Fortive is a diversified industrial growth company comprised of
Professional Instrumentation and Industrial Technologies businesses
that are recognized leaders in attractive markets. With 2016
revenues of $6.2 billion, Fortive's well-known brands hold leading
positions in field instrumentation, transportation, sensing,
product realization, automation and specialty, and franchise
distribution. Fortive is headquartered in Everett, Washington and
employs a team of more than 24,000 research and development,
manufacturing, sales, distribution, service and administrative
employees in more than 40 countries around the world. With a
culture rooted in continuous improvement, the core of our company's
operating model is the Fortive Business System. For more
information please visit: www.fortive.com.
NOTICE TO INVESTORS
This announcement is neither an offer to purchase nor a
solicitation of an offer to sell securities. The tender offer for
the outstanding shares of Landauer common stock described in this
press release has not yet commenced. At the time the planned offer
is commenced an indirect, wholly-owned subsidiary of Fortive will
file a tender offer statement on Schedule TO with the Securities
and Exchange Commission and Landauer will file a
solicitation/recommendation statement on Schedule 14D-9 with
respect to the planned offer. The tender offer statement (including
an offer to purchase, a related letter of transmittal and other
offer documents) and the solicitation/recommendation statement will
contain important information that should be read carefully before
any decision is made with respect to the tender offer. Those
materials will be made available to Landauer stockholders at no
expense to them. In addition, all of those materials (and all other
offer documents filed with the SEC) will be available at no charge
on the SEC's Web site: www.sec.gov.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical,
including the statements regarding including statements regarding
the proposed acquisition of Landauer, the expected timetable for
completing the transaction, the planned integration of Landauer
into Fortive's Field Solutions platform, and any other statements
identified by their use of words like “expect,” “believe,” or other
words of similar meaning are “forward-looking” statements within
the meaning of the federal securities laws. There are a number of
important factors that could cause actual events to differ
materially from those suggested or indicated by such
forward-looking statements and you should not place undue reliance
on any such forward-looking statements. These factors include,
among other things: general economic conditions and conditions
affecting the industries in which Fortive and Landauer operate, the
uncertainty of regulatory approvals; the parties' ability to
satisfy the tender offer and merger agreement conditions and
consummate the transaction; the ability to realize anticipated
growth, synergies and cost savings; and Fortive's ability to
successfully integrate Landauer’s operations and employees with
Fortive's existing business. Additional information regarding these
and other factors that may cause actual results to differ
materially from these forward-looking statements is available in
our SEC filings, including our Annual Report on Form 10-K for the
year ended December 31, 2016, as well as Landauer’s SEC filings,
including Landauer’s Annual Report on Form 10-K for the year ended
September 30, 2016. These forward-looking statements speak only as
of the date of this release, and Fortive does not assume any
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events and
developments or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170906005730/en/
Fortive CorporationLisa Curran, 425-446-5000Vice President
Investor Relations6920 Seaway Boulevard, Everett, WA 98203
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