Danaher to Buy Fluke for $625 Million

Danaher Corp., the maker of Craftsman tools and industrial equipment, agreed to buy Fluke Corp., a maker of electronic testing tools, for $625 million in stock, or $33.39 a share, a 44% premium over Friday’s close. Washington, D.C.-based Danaher will swap 0.45 share for each Fluke share. Everett, Wash.-based Fluke had 1997 sales of $430.2 million last year. Separately, Fluke warned that earnings for the fiscal fourth quarter ended Friday won’t meet expectations. Still, analysts said Fluke has a strong product line and the acquisition is a good strategic fit for Danaher. Fluke shares dropped $7.59 to close at $30.97, and Danaher shares fell $4.25 to close at $69.56. Both trade on the NYSE.