Danaher(DHR) announced the date for the spinoff of Veralto(VLTO), its water quality and product identification business. Shareholders of Danaher as of September 13, 2023 will receive one share of Veralto for every three shares they own of Danaher on September 30, 2023. The transaction is expected to be tax free to shareholders.
Danaher is no stranger to spinoff scene, having spun off Fortive (FTV) in 2016 and Envista (NVST) in 2019. The conglomerate has been one of the most successful compounders of value using the Danaher Operating System to integrate and optimize newly acquired companies. At the same time, it has not hesitated to divest assets that no longer made sense as part of the conglomerate.
The Waltham, MA-based Veralto will have annual revenue of nearly $5 billion and will employ 16,000 people. Its products are critical to potable water supplies, a critical problem around the world.
Disclosure: The author holds no position in any stock mentioned.