Danaher Offers to Buy Cooper for $5.5 Billion

Danaher Corp., the maker of Craftsman tools, offered to pay as much as $5.5 billion for electrical tool maker Cooper Industries Inc., which rejected an unsolicited bid from Danaher two years ago.

Danaher proposed paying $54 to $58 a share for Cooper, which manufactures Halo lighting fixtures and Crescent wrenches, and would assume about $1 billion in debt. The bid is as much as 40% higher than Cooper’s closing share price Wednesday. Cooper shares climbed $11.39, or 27%, to $52.90 on the New York Stock Exchange.

Danaher is trying to persuade Cooper shareholders to accept the proposal before they vote on whether to incorporate in Bermuda, where takeover laws might present a hurdle.

Chief Executive Lawrence Culp said Danaher will drop the offer if Cooper shareholders approve the measure.

Acquiring Cooper would double Danaher’s sales to about $8 billion. The combination would help to bolster profit by letting the companies reduce expenses and improve operating efficiencies as the U.S. economy slows, Danaher said.

Cooper officials didn’t return calls seeking comment.

Shares of Washington, D.C.-based Danaher fell 29 cents to $56.30 on the New York Stock Exchange.