Interested in investing in Danaher, one of the largest American companies? Read our comprehensive article for important information about the company.
Still relatively unknown to European investors, Danaher is an industrial group and Fortune 500 company with big potential. Read on for more information about Danaher's stock profile.
Danaher started out as a Massachusetts-based real estate investment company called Diversified Mortgage Inc. The Danaher name was adopted in 1984 when the company moved to Delaware.
Danaher has grown from a real estate company to a leading equipment manufacturer through continuous acquisition of industrial businesses. Just two years after changing its name to Danaher, it acquired 12 manufacturing companies as part of a strategy to conquer the industrial sector. In total, Danaher has made more than 400 acquisitions over the past 30 years.
Danaher has become a conglomerate, i.e a group of companies with activities in different sectors.
Danaher Corporation is a leading manufacturer and marketer of analytical instruments, medical devices and medical identification products. It operates in several business segments :
Danaher’s expansion is based upon the acquisition of companies around the world, with operations in 60 countries. The firm applies its business and operating model to its subsidiaries in order to transform them into revolutionary, innovation-driven businesses.
Danaher is skilled at finding companies in growth markets. It avoids well-known brands and startups, preferring to invest in companies with no major competitors.
One of Danaher's strengths is that it operates in a key sector, namely human health. Its products and services are critical to enhancing diagnostic reliability and advancing medical research. In this field, it includes leading companies such as Beckman Coulters and Leica Biosystem. The Group's healthcare segment generates 60% of its revenue.
The American Danaher Group is also active in global water supply and water quality. It should be noted that water-related services represent a market of 600 billion dollars with a growth rate of 4 to 6% per year.
Another advantage of the group is the diversification of its activities and the large number of companies within its conglomerate. It can also leverage its global presence. This business model allows it to pool risks.
Danaher faces fierce competition from groups specializing in each of its business sectors. Among its competitors are Fresenius (medical devices) and Veolia Environnement (water and environment).
