Danaher: Acquisitive With Masimo, What About Its Track Record?

The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryDanaher announced a $9.9B acquisition of Masimo, aiming to enhance its diagnostics and patient monitoring portfolio.Danaher expects the deal to be accretive by $0.15–$0.20 per share in year one, rising to $0.70 by year five, with synergies dropping the EBITDA multiple to 15x.Despite a strong long-term track record, Danaher's recent performance and premium-priced acquisitions have pressured valuation multiples and raised leverage to ~3.2x.I remain cautious on Danaher due to mixed recent value creation, high leverage, and premium acquisition prices, but would reconsider on further share price dips.Value In Corporate Events members get exclusive access to our real-world portfolio. See all our investments here » Sundry Photography/iStock Editorial via Getty Images Shares of Danaher (DHR) recently hit the news wires after the company announced its intention to acquire Masimo Corp. (MASI). The market has been reserved about this large deal, as Danaher seems toThis article was written byThe Value Investor27.66K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.