Danaher Corp. (Washington, DC) has signed a definitive agreement to acquire EskoArtwork (Ghent, Belgium) from Axcel, a Danish Investment group that presently owns 70% of the software company. EskoArtwork produces pre-production, automation, quality-assurance and collaboration software for packaging designers, brand owners and manufacturers. It also produces signage finishing systems and the Enfocus suite of PDF tools.
The $470 million sale, expected close in the first half of 2011, is subject to customary conditions. When concluded, EskoArtwork will become a part of Danaher’s Production Identification unit.
Carsten Knudsen, EskoArtwork’s CEO, said his firm will become an autonomous business unit in Danaher’s operation.
Axcel, a Danish Investment Group invested in Esko-Graphics in 2005 and, in 2007, the company acquired competitor Artwork Systems, a producer of pre-production, color-printing software. When merged, the company’s became EskoArtwork, which now employs more than 900 people. Its estimated 2010 revenues were $247 million.
Danaher 2009 revenue was $11.2 billion. Its more than 100 companies employ more than 47,000 “associates” who produce and distribute products for medical, industrial, professional and commercial customers in 125 countries. Danaher’s better known manufacturing companies are Craftsman Hand Tools, Kobalt and Matco tools, but most related to EskoArtworks software is VideoJet Inc.’s (Wood Dale, IL) Product Decoration Div. VideoJet manufacturers commercial-inkjet imaging devices for the commercial printing industry; the decoration divison’s product manager is Jason Lund.
A February 2007 Business Week story said Danaher “…is probably the best-run conglomerate in America.” The story the company, over 20 years, “had returned a remarkable 25% to shareholders annually, far better than GE (16%), Berkshire Hathaway (21%), or the Standard & Poor’s 500-stock index (12%).”
Business analysts say Danaker’s growth stems from its acquisitions and Toyota-like, lean-manufacturing policies.