, Columnist
Danaher's New Look Is Pricey to Maintain
Exhibit A, its expensive deal for money-losing Cepheid.
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The new, nimbler Danaher has expensive taste.
The $55 billion company said Tuesday that it will buy diagnostics-equipment maker Cepheid for about $4 billion, marking its first major purchase since completing the spinoff of its more industrial-focused businesses in July. The quick turnaround between the split and this week's deal announcement helps reinforce the logic of the breakup, which Danaher said would help it focus in on life sciences and make it easier to find growth-boosting acquisitions. Easier to find doesn't necessarily mean cheap to buy, though.