Companies: Danaher/Beckman Coulter
Value: $6.8 billion
Scoop: In early 2011, Danaher Corporation ($DHR) entered an agreement to buy Beckman Coulter ($BEC) in a transaction valued at approximately $6.8 billion. It was the largest purchase to date for the Washington, DC-based company.
However, not long after the deal was wrapped up, Beckman received an FDA warning letter that pointed out inadequate quality controls at its California plant. It was not the first bump the company had endured over the previous two years. CEO Scott Garrett left in the fall of 2010 after the company cut its guidance twice and recalled a test for measuring a protein that signals heart problems due to faulty results. The FDA had admonished Beckman for reportedly marketing that test without required clearance.
But Danaher still sees great promise with Beckman. The company is hoping the Beckman buy will help it grow in emerging foreign markets, particularly in China, Market Watch noted in September. China accounted for roughly 22% of Beckman's revenue in 2010, according to the news service.
Recently, Danaher CEO H. Lawrence Culp said his company is ahead of schedule at reducing costs at Beckman and is looking to reach $350 million a year in cuts by 2014, Dow Jones recently reported.