Danaher drops $1bn sale of defence unit

DIVERSIFIED US manufacturer Danaher has dropped plans to sell its aerospace and defence business for more than $1bn (£640m) after no buyer emerged for the entire business.

Danaher, which hired Goldman Sachs earlier this year to solicit buyers for the business that makes aviation safety equipment and weapons platforms, had received interest only for different parts of the unit, but it did not want to break up the business.

Danaher has not entirely ruled out the possibility of splitting up the division to several different buyers, but it is less likely because any piecemeal sale would take longer.

Danaher, whose wide range of products includes dental and medical technology, speciality tools and equipment for testing water quality, generated $11.2bn of revenue in 2009.

Its aerospace and defence business, which accounts for $700m to $800m in annual sales, makes a broad array of products including smoke detection and fire systems.