Danaher Is Said to Be in the Lead to Acquire Abcam
Comment of the Day

August 25 2023

Commentary by Eoin Treacy

Danaher Is Said to Be in the Lead to Acquire Abcam

This article from Bloomberg may be of interest to subscribers. Here is a section:

Danaher Corp. has emerged as the leading bidder for biotechnology supplier Abcam Plc, according to people familiar with the matter. 

Danaher has pulled ahead of other bidders and is negotiating with the Cambridge, England-based company to reach a deal, the people said, asking not to be identified because the matter is private.

Nothing is finalized and talks could still fall apart. It’s still possible another bidder could prevail, the people said.

A representative for Abcam declined to comment. A representative for Danaher couldn’t immediately be reached for comment. 

Bloomberg reported in June that Abcam had attracted initial interest from US life sciences company Danaher and Agilent Technologies Inc.

Abcam said in June that it was starting a process to explore strategic options including a sale after receiving interest from multiple parties.

Eoin Treacy's view

Abcam’s success in listing in the USA and impending sale at a premium to Danaher is a testament to the depth of the US capital markets. If other markets are to compete in hosting promising companies, the scale of regulation to comply with will need to decrease and the welcome offered to companies will need to improve.
Danaher has deployed a private equity business model to good effect over the last twenty years and continues to be adept at acquiring niche businesses with significant growth potential.

The share is firming from the region of the 1000-day MA and is in the process of breaking the almost two-year downtrend.

Thermo Fisher Scientific has been ranging hitting a medium-term peak in early 2022. It is now firming from the lower boundary and the region of the 1000-day MA. A sustained move above $600 would confirm a return to medium-term demand dominance. 

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