June 13, 2024 13:16 GMT
Danaher (DHR: A3 /A-): EUR Is Rich to US$
HEALTHCARE
On a currency adjusted basis, DHR trades 12bps rich in EUR vs USD.
- Danaher is an acquisitive company. 2013/14 Pall Corp $14b; 2020 GE Life $21.4b
- In Dec 2023, DHR bought Abcam for $5.7b in cash.
- They also divested of Veralto, which saw VLTO reimburse DHR with $2.6b as part of the spin-off.
- DHR generates about $5.7b FCF per year so there is no immediate urgency about financing the Abcam acquisition but it does have $1.2b maturing over the next 15 months with a further €2,050m due in 2026.
- It has not come to the bond markets since 2021.
- As we can see from the chart, DHR trades rich in EUR vs USD. If they were to issue to fund upcoming maturities or further M&A, there is a good chance that they would tap the EUR markets first.
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