Danaher To Separate Environmental & Applied Solutions Segment As Listed Entity

Danaher Corp DHR intends to separate its Environmental & Applied Solutions segment to create an independent, publicly traded company.
The new company will be comprised of Danaher's Water Quality and Product Identification businesses and will be referred to as "EAS" until it is named at a later date.
The transaction is intended to be tax-free to Danaher shareholders and is expected to be completed in 4Q23.
"We believe that EAS will be advantaged as a standalone company with greater opportunities to pursue high-impact organic and inorganic investments," said CEO Rainer Blair.
Related: Danaher Easily Beats Q2 Street View With Growth From Base Business; FY22 Outlook Unchanged.
"The combination of a resilient business model—with more than 50% recurring revenue—and a talented team with a foundation built on the Danaher Business System will position EAS to continue delivering the same outstanding results as part of Danaher."
Jennifer Honeycutt will become EAS's President and CEO upon the transaction's completion. Honeycutt joined Danaher in 1999 and currently serves as a Danaher EVP responsible for the Environmental & Applied Solutions segment.
EAS owns a portfolio of brands in water quality and product identification. The segment generated revenue of $4.7 billion in 2021 and has approximately 16,000 associates.
Price Action: DHR shares closed 4.35% higher at $294.01 during after-hours trading on Wednesday.