Danaher Announces New Environmental and Applied Solutions Company to Be Named Veralto

Rhea-AI Summary

Danaher Corporation (NYSE: DHR) announced the creation of a new public entity, Veralto Corporation, expected to launch in Q4 2023. Veralto will encompass Danaher’s Environmental and Applied Solutions (EAS) segment, which generated approximately $4.8 billion in revenue in 2022 and employs about 16,000 individuals. This standalone company will be led by Jennifer L. Honeycutt, Danaher's Executive VP. Veralto aims to list under the symbol VLTO on the New York Stock Exchange and will focus on improving global access to vital resources, including safe food and water. The name reflects the company's commitment to excellence.

Positive

• Veralto will consolidate market-leading brands from Danaher's EAS segment, enhancing operational efficiency.
• The new company is projected to maintain an investment-grade credit rating.
• Veralto's expected revenue of $4.8 billion in 2022 indicates a strong market position and potential for growth.

Negative

• None.

WASHINGTON, Feb. 8, 2023 /PRNewswire/ -- Danaher Corporation (NYSE: DHR) ("Danaher") today announced that Veralto Corporation ("Veralto" or the "Company") will be the name of the separate public company Danaher intends to create in the fourth quarter of 2023. 

Veralto will be comprised of an outstanding collection of market-leading brands in Danaher's Environmental and Applied Solutions (EAS) segment:  Hach, ChemTreat, Trojan, OTT HydroMet, and McCrometer from Danaher's Water Quality Platform and Videojet, Esko, X-Rite Pantone and Linx from the Product Identification Platform. In 2022 the EAS segment generated revenue of approximately $4.8 billion and has a global team of approximately 16,000 associates. As a standalone entity, Veralto is expected to have an investment-grade credit rating. The new company will be led by Jennifer L. Honeycutt, who will become President and Chief Executive Officer. Ms. Honeycutt currently serves as Danaher Executive Vice President, with responsibility for the EAS segment.

"The name Veralto brings together two familiar Latin root words 'Veri' for truth and 'Alto' for height, reflecting our commitment to excellence and the higher purpose that compels us to create a better future for all. As stewards of the world's most vital resources, our businesses help ensure billions of people have safe food, water, and medicines every day," Ms. Honeycutt said.

"With a strong Danaher heritage, the Veralto team will continue to deliver trusted expertise to solve our customers' most complex workflow challenges," she continued. "Our culture of continuous improvement will be codified in the Veralto Enterprise System, which is derived from the Danaher Business System, and will continue to provide our businesses with sustainable competitive advantage."

Veralto will establish its headquarters in Waltham, Massachusetts, and intends to apply to list its common stock on the New York Stock Exchange under the symbol VLTO. 

NOT AN OFFER OF ANY SECURITIES

The information in this communication is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities.

ABOUT DANAHER

Danaher is a global science and technology innovator committed to helping its customers solve complex challenges and improving quality of life around the world. Its family of world class brands has leadership positions in the demanding and attractive health care, environmental and applied end-markets. With more than 20 operating companies, Danaher's globally diverse team of approximately 81,000 associates is united by a common culture and operating system, the Danaher Business System, and our Shared Purpose, Helping Realize Life's Potential. For more information, please visit www.danaher.com.

FORWARD-LOOKING STATEMENTS

Statements in this release that are not strictly historical, including the statements regarding the anticipated standing up of Veralto as a public company, Veralto's anticipated credit rating, Veralto's leadership, businesses, strategy, prospects and plans, and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things, the highly uncertain and unpredictable severity, magnitude and duration of the COVID-19 pandemic (and the related governmental, business and community responses thereto) on our business, results of operations and financial condition, the impact of our debt obligations on our operations and liquidity, deterioration of or instability in the economy, the markets we serve and the financial markets (including as a result of the COVID-19 pandemic), uncertainties relating to U.S. laws or policies, including potential changes in U.S. trade policies and tariffs and the reaction of other countries thereto, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including rules relating to off-label marketing and other regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, our ability to effectively address cost reductions and other changes in the health care industry, our ability to successfully identify and consummate appropriate acquisitions and strategic investments and successfully complete divestitures and other dispositions, our ability to integrate the businesses we acquire and achieve the anticipated growth, synergies and other benefits of such acquisitions, contingent liabilities and other risks relating to acquisitions, investments, strategic relationships and divestitures (including tax-related and other contingent liabilities relating to past and future IPOs, split-offs or spin-offs), security breaches or other disruptions of our information technology systems or violations of data privacy laws, the impact of our restructuring activities on our ability to grow, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, changes in tax laws applicable to multinational companies, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, the rights of the United States government to use, disclose and license certain intellectual property we license if we fail to commercialize it, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, uncertainties relating to collaboration arrangements with third-parties, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, the impact of deregulation on demand for our products and services, the impact of climate change, or legal or regulatory measures to address climate change, labor matters and our ability to recruit, retain and motivate talented employees, international economic, political, legal, compliance, social and business factors (including the impact of the military conflict between Russia and Ukraine and the United Kingdom's separation from the European Union), disruptions relating to man-made and natural disasters (including pandemics such as COVID-19), pension plan costs, inflation and supply chain disruption.  Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2021 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2022.  These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

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SOURCE Danaher Corporation

FAQ

What is Veralto Corporation and its purpose?

Veralto Corporation is a new public company created from Danaher's Environmental and Applied Solutions segment, focusing on improving global access to essential resources.

When will Veralto be established as a public company?

Veralto is expected to launch as a standalone public company in the fourth quarter of 2023.

What is the expected stock symbol for Veralto on the NYSE?

Veralto intends to list under the stock symbol VLTO on the New York Stock Exchange.

Who will lead Veralto Corporation?

Jennifer L. Honeycutt, currently Danaher's Executive Vice President, will be the President and CEO of Veralto Corporation.

What was the revenue generated by Danaher's EAS segment in 2022?

In 2022, Danaher's Environmental and Applied Solutions segment generated approximately $4.8 billion in revenue.