Fortive

Last updated

Fortive Corporation
Company type Public
Industry Conglomerate
Founded2016;8 years ago (2016)
Headquarters Everett, Washington, United States
Area served
Worldwide
Key people
RevenueIncrease2.svg US$6.07 billion (2023)
Increase2.svgUS$1.13 billion (2023)
Increase2.svgUS$866 million (2023)
Total assets Increase2.svgUS$16.9 billion (2023)
Total equity Increase2.svgUS$10.3 billion (2023)
Number of employees
c. 18,000 (2023)
Subsidiaries
Website fortive.com

Fortive Corporation is an American industrial technology conglomerate company headquartered in Everett, Washington. The company specializes in providing essential technologies for connected workflow solutions; designing, developing, manufacturing and distributing professional and engineered products, software and services. [1] Their products and services are split into three strategic segments; Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. [2] As of December 2022, Fortive has over 18,000 employees in 60 countries worldwide. [3]

Contents

Fortive was spun off from Danaher in July 2016. [4] Brothers Steven and Mitchell Rales, Danaher's founders, retained board seats with Fortive after the separation. [5] At the point of its independent incorporation, Fortive immediately became a component of the S&P 500. Later the transportation, automation and franchise distribution businesses would be spun off. In 2018 and 2019, Fortune named Fortive as a Future 50 company. [6] In 2020, Fortune named Fortive one of the world's most admired companies. [7] [8]

Acquisitions

2016

In September 2016, Fortive subsidiary Fluke, which specializes in electronic test equipment, acquired eMaint, a CMMS IIoT system. [9] In October 2016, another subsidiary Gilbarco Veeder-Root which specializes in industrial sales software, purchased Global Transportation Technologies (GTT), a provider in traffic management. [10] [11]

2017

In July 2017, Fortive acquired Pittsburgh-based Industrial Scientific, [12] which manufactures gas detection products. [13] Fortive established their second quarters in the Industrial Scientific building housing many of their data science and analytics teams.

In September 2017, Fortive purchased Landauer for $770 million. [14] Landauer is a provider of subscription-based technical and analytical services to determine occupational and environmental radiation exposure, as well as a domestic provider of outsourced medical physics services. They are headquartered in Glenwood, Illinois.

Fortive subsidiary Gilbarco Veeder Root acquired Orpak Systems, which delivers technologies to oil companies and commercial fleets. [15]

2018

In July 2018, Fortive announced it was buying software firm Accruent for about $2 billion. [16] Accruent makes software to track real estate and facilities. [17] Also in July 2018, Fortive announced it would buy construction software company Gordian for $775 million from private equity firm Warburg Pincus. Gordian, based in Greenville, South Carolina, makes software that tracks costs of construction projects, manages facility operations and generally gives building companies more insight into big projects. [18] In December 2018 Tektronix acquired Initial State.[ citation needed ]

2019

In June 2018, Fortive made a binding offer to buy Johnson & Johnson's Advanced Sterilization Products (ASP) business. [19] The deal was valued at $2.8 billion, made up of $2.7 billion in cash from Fortive and $0.1 billion of retained net receivables, and closed in April 2019. [20] Furthering their investment in healthcare, in November 2019 Fortive acquired Censis Technologies, a SaaS-based provider of inventory management in the surgical field, headquartered in Franklin, Tenn., from Riverside, a global private equity firm headquartered in Cleveland Ohio. Terms of the deal were not disclosed. [21]

In July 2019, Fluke acquired Germany based Pruftechnik, in precision laser shaft alignment, condition monitoring, and non-destructive testing, [22] to further their reliability business unit. [23]

In addition to previous acquisitions, like Predictive Solutions (Jan 2017) [24] and ActiveBlu (2017), [25] Industrial Scientific has made multiple acquisitions as part of Fortive. In June 2019 Industrial Scientific entered in a definitive agreement to buy Canadian based Intelex, a provider of SaaS-based Environmental, Health, Safety and Quality (EHSQ) management software. [26] The following month (July 2019), Industrial Scientific entered a definitive agreement to acquire SAFER Systems, a provider for the chemical, oil & gas, and transportation industries. [27]

2020

In November, Intelex Technologies, a subsidiary of Industrial Scientific, announced that it has acquired ehsAI, a compliance automation technology provider. [28]

2021

In July Fortive exercised their option on Team Sense, finalizing the acquisition form PSL. [29] Later that month, Fortive entered into a definitive agreement with Bayard Capital and Accel Partners to acquire ServiceChannel, a leading global provider of SaaS-based multi-site facilities maintenance service solutions[ buzzword ] with an integrated service-provider network. Fortive anticipates that the acquisition will close in the third quarter of 2021. ServiceChannel FY 2021 revenue expected to be approximately $125 million (recurring revenue of approximately $117 million); expected long-term revenue growth rate of mid-teens. This acquisition expected to enhance Fortive’s revenue growth profile by approximately 50 basis points; anticipated to reach 10% ROIC target in 5 years. The purchase price for the acquisition is approximately $1.2 billion and is expected to be funded primarily with available cash. Upon closing, ServiceChannel is expected to be an independent operating company within Fortive’s Intelligent Operating Solutions segment. ServiceChannel expands Fortive’s leading offering of Facility and Asset Lifecycle workflow solutions[ buzzword ], alongside Accruent and Gordian. [30]

2023

In October 2023, Fortive acquired German manufacturer Elektro-Automatik for $1.45 billion to strengthen Fortive's position in the electronic test and measurement market. [31] [32]

Divestitures

In October 2018, Fortive spun off their automation businesses, namely, Kollmorgen, Thomson, Portescap, Jacobs Vehicle Systems, and associated subsidiaries to Altra Industrial Motion [33] for an estimated $3 billion. [34]

In September 2019, Fortive announced its intention to split into two separate publicly traded companies. [35] In January 2020, the name of the new company was announced as Vontier. Vontier would comprise the transportation and franchises businesses. Specifically, the spin off would include Gilbarco Veeder Root, Matco Tools, Hennessey, GTT, Teletrac Navman, and associated subsidiaries. [36] An IPO was estimated to yield $1 billion, but was postponed in April 2020 due to uncertainty in the market stemming from the COVID pandemic. [37] Instead, Fortive chose to spin the business off to shareholders in October 2020 without first having the IPO. [38] [39] Upon separation, Vontier replaced Noble Energy as a member of the S&P 500. [40]

Innovation

Historically, growth in Fortive's portfolio companies had primarily come from M&A activity and operational excellence under the vaunted Danaher Business System. [41] Fortive has sought to achieve organic growth through establishing a culture of experimentation and innovation. Early on, this meant working with Innovators DNA to incorporate best practices. [42] Fortive's approach has proved successful. Notable new product introductions have included Tektronix MS05X "Elemental", [43] Fluke's T6, [44] Invetech's Formulate and Fill platform, [45] Anderson-Negele's paperless recorder, [46] and Fluke's ii900. [47] In the middle of the COVID pandemic, when there was a shortage of N-95 masks, ASP quickly innovated on existing technology to allow hospitals to clean masks. [48]

In May 2020, Fortive partnered with Pioneer Square Labs (PSL) to launch tech startups. [49] In June 2020, Fortive, in partnership with PSL, launched TeamSense. [50]

Culture

Fortive's culture dates back to the Toyota Production System adopted by Danaher. At Fortive it has been branded as the Fortive Business System or FBS for short. [51] FBS has been referenced on multiple earnings calls as a key driver for sustained growth and operational excellence within the various operating companies. [52] Fortive's culture around integrity and compliance has led to several initiatives around Inclusion and Diversity. [53] Fortive has been named among the best places to work for LGBTQ Equality by the Human Rights Campaign several times. [54]

Fortive allows each of its associates a paid day of leave each year to volunteer in their local community. [55] In 2020, Newsweek named Fortive as one of their top 500 most responsible companies. [56]

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References

  1. ↑ Fortive Corporation (October 31, 2023). "Fortive to Present at the Baird Global Industrial Conference". Business Wire (English).
  2. ↑ Fortive Corporation (May 12, 2023). "Fortive to Webcast Investor Day". Business Wire (English).
  3. ↑ MarketLine Company Profile: Fortive Corp (Report). MarketLine, a Progressive Digital Media business. May 10, 2023. pp. 1–29.
  4. ↑ "Danaher Completes Fortive Spin-Off, Trading to Begin Today" . Retrieved November 10, 2017.
  5. ↑ "Fortive Corporation - Governance - Board of Directors". investors.fortive.com. Retrieved June 28, 2020.
  6. ↑ "Future 50". Fortune. Retrieved June 28, 2020.
  7. ↑ "Fortive". Fortune. Retrieved June 28, 2020.
  8. ↑ "World's Most Admired Companies". Fortune. Retrieved May 19, 2022.
  9. ↑ "Fluke Acquires eMaint Enterprises". www.fluke.com. Retrieved June 28, 2020.
  10. ↑ "TorQuest Partners Sells GTT to Gilbarco". Wall Street Journal. October 28, 2016. ISSN   0099-9660 . Retrieved June 28, 2020.
  11. ↑ "Everett-based Fortive buys another software company for $2 billion".
  12. ↑ "Industrial Scientific acquired by Fortive Corporation". Industrial Safety & Hygiene News: 22. September 2, 2017.
  13. ↑ "Industrial Scientific Welcomes New Owner, Fortive Corporation". www.indsci.com. Retrieved August 29, 2020.
  14. ↑ "Fortive to Acquire Landauer for $67.25 Per Share, or Approximately $770 Million". investors.fortive.com. Retrieved June 28, 2020.
  15. ↑ "Gilbarco Veeder-Root Acquires Orpak Systems | Gilbarco Veeder-Root". www.gilbarco.com. Retrieved August 29, 2020.
  16. ↑ "Fortive to buy software maker Accruent for $2 billion". Reuters. July 31, 2018. Retrieved June 28, 2020.
  17. ↑ "Everett's Fortive scoops up software company for $2 billion". The Seattle Times. July 31, 2018. Retrieved August 1, 2018.
  18. ↑ Lerman, Rachel (July 2, 2018). "Everett-based Fortive to buy construction tech company Gordian for $775 million". The Seattle Times. Retrieved June 28, 2020.
  19. ↑ "Johnson & Johnson to Sell Advanced Sterilization Products to Fortive for $2.8 Billion". BioSpace. Retrieved June 28, 2020.
  20. ↑ "Fortive Completes Acquisition of Advanced Sterilization Products Business from Johnson & Johnson". www.businesswire.com. April 1, 2019. Retrieved June 28, 2020.
  21. ↑ "Riverside sells Censis Technologies to Fortive". Crain's Cleveland Business. November 11, 2019. Retrieved June 28, 2020.
  22. ↑ "Fluke Corporation acquires PRUFTECHNIK | Press Release | PRUFTECHNIK". www.pruftechnik.com. Retrieved June 28, 2020.
  23. ↑ N, R. "Fluke Corporation acquires Pruftechnik". Archived from the original on October 24, 2020. Retrieved June 28, 2020.
  24. ↑ "Predictive Solutions Launches New, Simplified Level of SafetyNet". PRWeb. Retrieved July 8, 2020.
  25. ↑ "Industrial Scientific | About Us | The Global Leader in Gas Detection". www.indsci.com. Archived from the original on June 17, 2020. Retrieved July 8, 2020.
  26. ↑ "INTELEX ANNOUNCES DEFINITIVE AGREEMENT TO BE ACQUIRED BY INDUSTRIAL SCIENTIFIC". www.intelex.com. June 6, 2019. Retrieved June 28, 2020.
  27. ↑ "Industrial Scientific Acquires SAFER Systems®, Leader in Real-Time Plume Monitoring". www.indsci.com. Archived from the original on July 8, 2020. Retrieved July 8, 2020.
  28. ↑ GmbH, finanzen net. "EHSQ Management Just Got Smarter: Intelex Acquires Compliance Automation Provider ehsAI | Markets Insider". markets.businessinsider.com. Retrieved November 23, 2020.
  29. ↑ "Fortive Acquires TeamSense - A Major Success in Corporate Innovation". www.psl.com. Retrieved July 12, 2021.
  30. ↑ "Fortive to Acquire ServiceChannel for Approximately $1.2 Billion and Provides Preliminary Financial Information for the Second Quarter 2021". ca.finance.yahoo.com. Retrieved July 12, 2021.
  31. ↑ "Fortive acquires German manufacturer Elektro-Automatik for $1.45 bln". Reuters. October 23, 2023. Retrieved October 23, 2023.
  32. ↑ Fortive Corporation (October 23, 2023). "Fortive to Acquire EA Elektro-Automatik, an Industry-leading Provider of Electronic Test & Measurement Solutions". Business Wire (English).
  33. ↑ "Altra Industrial Motion Corp. Completes Combination with Fortive's Automation & Specialty Platform". www.altramotion.com. Retrieved June 28, 2020.
  34. ↑ "Altra Industrial to buy Fortive units in $3 billion deal". Reuters. March 7, 2018. Retrieved June 28, 2020.
  35. ↑ Cornell, Joe. "Fortive (FTV) Announces Intention to Separate Into Two Independent Publicly Traded Companies". Forbes. Retrieved June 28, 2020.
  36. ↑ "Fortive Announces New Global Industrial Company: Vontier". Industrial Distribution. January 20, 2020. Retrieved June 28, 2020.
  37. ↑ Capital, Contributor Renaissance Capital Renaissance. "Fortive carve-out Vontier withdraws estimated $1 billion IPO". www.nasdaq.com. Retrieved June 28, 2020.{{cite web}}: |first= has generic name (help)
  38. ↑ Cornell, Joe. "Fortive To Spin-Off 80.1% Of Vontier To Its Shareholders In 4Q20". Forbes. Retrieved October 11, 2020.
  39. ↑ Schultz, SA Editor Clark (October 9, 2020). "Vontier starts trading after breaking free from Fortive (NYSE:VNT)". Seeking Alpha. Retrieved October 11, 2020.{{cite web}}: |first= has generic name (help)
  40. ↑ "Vontier To Replace Noble Energy In S&P 500".
  41. ↑ "Danaher and its Business System - A Model of Excellence". Technology and Operations Management. Retrieved June 28, 2020.
  42. ↑ "Curtis Lefrandt – Gilbarco's Annual Retail Technology Conference". Archived from the original on June 30, 2020. Retrieved June 28, 2020.
  43. ↑ "Fortive Awards Innovative Teams for a Job Well Done | Fortive". www.fortive.com. Retrieved June 28, 2020.
  44. ↑ "2018 Fortive Innovation Awards | Fortive". www.fortive.com. Archived from the original on June 28, 2020. Retrieved June 28, 2020.
  45. ↑ "Invetech's Formulate and Fill Platform Wins Fortive Innovation Award". Invetech. Retrieved June 28, 2020.
  46. ↑ "PPR Paperless Recorder Instrumentation & Controls, Pasteurization Controls Products | Anderson-Negele USA". Anderson-Negele North America. Retrieved June 28, 2020.
  47. ↑ "Leak Detector | ii900 Sonic Industrial Imager Acoustic Imaging Camera". www.fluke.com. Retrieved June 28, 2020.
  48. ↑ "Fortive CEO on sterilizing masks". CNBC. April 16, 2020. Retrieved June 28, 2020.
  49. ↑ "Fortive and PSL Form Joint Innovation Studio to Create New Companies". news.yahoo.com. Retrieved June 28, 2020.
  50. ↑ "About". www.teamsense.com. Retrieved June 28, 2020.
  51. ↑ "Fortive Business System FBS | Fortive". www.fortive.com. Retrieved June 28, 2020.
  52. ↑ "Fortive Corporation - Events/Presentations". investors.fortive.com. Retrieved June 28, 2020.
  53. ↑ "Inclusion & Diversity | Fortive". www.fortive.com. Retrieved June 28, 2020.
  54. ↑ "HRC's 2020 Corporate Equality Index". Human Rights Campaign. Retrieved June 29, 2020.
  55. ↑ "Fortive Day of Caring". CEO Action for Diversity & Inclusion. Retrieved June 28, 2020.
  56. ↑ "America's Most Responsible Companies 2020". Newsweek . November 20, 2019.
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