Gilbarco Veeder-Root, a wholly owned unit of
Danaher Corporation (
DHR), agreed to buy a petroleum dispensing pump (PDP) unit from Larsen & Toubro (L&T) in India. The PDP business unit manufactures, sells, integrates and services petroleum dispensers, LPG equipment, and automation systems solutions. The financial terms of the acquisition were not disclosed.
This acquisition will further strengthen Gilbarco’s position in the fast growing Indian market. Danaher’s management stated that the acquisition reaffirms the company’s interest in India and is in tandem with its long-term growth strategy. The acquired unit will be joining 14 other Danaher companies in India.
The PDP unit will be a part of Gilbarco Veeder-Root’s organization in a new division called Gilbarco Veeder-Root India. Gilbarco supplies integrated fuel control, site management and support services for petroleum marketers and commercial fuelling enterprises.
During its third quarter conference call, Danaher pointed that it was seeing strongly positive growth in China and India, the two high growth countries in Asia. The company said that though the rest of the emerging markets were soft, it witnessed mid-single digit growth in China and India during the quarter. The company is quite bullish on growth opportunities in these two countries.
Danaher is focused on strengthening its competitive position and accelerating its sales and earnings growth potential through acquisitions. During the third quarter, the company completed six acquisitions and announced another two acquisitions to be completed in the fourth quarter.
Danaher Corporation, together with its subsidiaries, designs, manufactures, and markets professional, medical, industrial, commercial, and consumer products, primarily in the United States, Europe, and Asia. Major competitors are
Emerson Electric Company (
EMR) and
Johnson Controls Inc (
JCI).
We currently have a Neutral recommendation on DHR.
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