Moody's puts Danaher on review

Moody's Investors Service said it placed Danaher Corp.'s A2 long-term and Prime-1 short-term ratings under review for possible downgrade, following the Feb. 7 announcement of its agreement to purchase Beckman Coulter, Inc. (Baa3/negative) in an all cash tender offer.

The action acknowledges the potential strategic benefits that the addition of Beckman Coulter's diagnostic businesses could bring to Danaher through enhancing its presence in life sciences, as well as potential cost and capital disciplines that Danaher could introduce at Beckman Coulter, Moody's said.

The review will consider the risks inherent in the current proposal including the magnitude of Danaher's higher leverage as well as integration risk given recent challenges to Beckman Coulter's operations, the agency added.

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