L-3 Communications Agrees To Acquire Danaher Unit For $210 Million

   DOW JONES NEWSWIRES 

L-3 Communications Holdings Inc. (LLL) agreed to acquire Danaher Corp.'s (DHR) Kollmorgen Electro-Optical unit for $210 million, broadening the defense contractor's presence in electronics systems used in military and commercial applications.

L-3 expects the deal, seen closing in the first quarter, to immediately add to its results. Kollmorgen--which develops and manufactures specialized equipment such as submarine photonics systems and periscopes--is expected to generate 2012 sales of about $160 million to $170 million, according to L-3.

Danaher said Kollmorgen and the recently divested Accu-Sort Systems Inc. are expected to contribute a penny a share to its earnings in the fourth quarter and 4 cents for the year.

L-3 in October reported that third-quarter earnings edged down 1.3% as sluggish government sales weighed down top-line results.

Danaher in October reported third-quarter profit fell 19%, as stronger sales couldn't make up for high acquisition-related costs. The diversified toolmaker has been focusing its efforts on medical technology, testing and measurement and dental equipment.

Shares of L-3 and Danaher closed Monday at $65.18 and $45.68, respectively. Neither were active premarket.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]