X-Rite, Inc., parent company of design industry color provider Pantone, has agreed to be purchased by Danaher through a cash tender offer to acquire all of the outstanding shares of common stock at a purchase price of $5.55 per share. The deal is valued at approximately $625 million, including debt assumed and net of cash acquired.
X-Rite develops, manufactures, markets and supports innovative color solutions through measurement systems, software, color standards and services. Upon closing, X-Rite will be part of Danaher's product identification group.
"We are excited about the opportunity to acquire two premier brands in X-Rite and Pantone," said William K. Daniel II, executive VP Danaher. "Color measurement is an attractive market adjacency to our existing product identification businesses. X-Rite's color measurement technologies complement Esko's digital packaging design capabilities to provide customers with a full range of solutions to meet their packaging and design needs. Along with Videojet and Esko, we believe X-Rite and Pantone will further Danaher's leading position in the product identification industry and present an attractive value creation opportunity."
The X-Rite board of directors has unanimously recommended that X-Rite shareholders accept and tender their shares into the offer. Certain shareholders representing approximately 68% of the voting power of X-Rite's outstanding shares intend to tender their shares into the offer. The transaction is expected to be completed during the second quarter of 2012.
Danaher is a science and technology firm that designs, manufactures, and markets products in a number of industries, including water treatment, commercial petroleum, communications, and dental equipment. Based in Washington D.C., the company generated $16.1 billion of revenue in 2011.