Tool maker Danaher Corp. (DHR) agreed to acquire Keithley
Instruments Inc. (KEI) for about $340 million as Danaher looks to
further build its test and measurement operations.
It will pay $21.60 a share for the electronic test-instruments
and systems maker, a 74% premium to Tuesday's closing price. The
stock had already more than doubled this year and last traded at
the offer price in mid-2004.
The deal, set to close in the fourth quarter, will cost Danaher
about $300 million as Keithley has about $40 million of cash and no
long-term debt. The company will become part of Danaher's Tektronix
business.
Danaher, which has been growing through acquisitions, has seen
its revenue improve along with the economy. The company in July
reported its second-quarter profit rose 26% on better-than-expected
sales.
Its stock was down 1% premarket at $41.05. The stock was up 23%
the past year through Tuesday.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com