Danaher appoints Julie Sawyer Montgomery as next CEO
Danaher announced on Monday that Julie Sawyer Montgomery will succeed Rainer Blair as President and CEO, effective October 1. Blair is retiring after six years as CEO and will serve as a senior advisor until March 31, 2027. Montgomery previously served as Executive Vice President, overseeing the diagnostics business, during which time revenue grew from approximately $6 billion to about $11 billion, with operating profit roughly tripling. She led the $9.9 billion acquisition of Masimo and the pending acquisition of StatLab. Analysts believe this appointment is not a strategic shift toward diagnostics but rather a recognition that her platform operating capabilities can be replicated across other areas.
Person:Julie Sawyer Montgomery
New Position:Chief Executive Officer (CEO) of Danaher
Previous Position:Executive Vice President of Danaher, responsible for the Diagnostics business
Danaher announced on Monday (August 3) that it has appointed Julie Sawyer Montgomery as its next President and Chief Executive Officer, effective October 1. Current CEO Rainer Blair will retire at that time. Blair is stepping down after six years as CEO (since September 2020), and the company stated this is part of a long-term succession plan.
Sawyer Montgomery most recently served as Executive Vice President, leading the Diagnostics business. Under her leadership, the business's revenue grew from approximately $6 billion in 2017 to about $11 billion today, with operating profit roughly tripling over the same period. She joined Danaher in 2017, initially overseeing commercial operations and R&D for Beckman Coulter Diagnostics, and became President of that business in 2020. Danaher acquired Beckman Coulter in 2011.
Sawyer Montgomery also led Danaher's $9.9 billion acquisition of Masimo (completed in June of this year) and the ongoing acquisition of StatLab. She brings nearly 25 years of experience in healthcare, commercial operations, and R&D.
Although Danaher expressed optimism in its statement about Sawyer Montgomery's achievements in the Diagnostics business and the commercial restructuring of Beckman Coulter Diagnostics, JPMorgan analyst Casey Woodring noted in a report to clients that her appointment does not signal a strategic shift toward Diagnostics.
Woodring wrote: "Management indicated they believe Montgomery's approach of leveraging Danaher's platform advantages in Diagnostics can be effectively applied to other areas of the company's business." In addition to Diagnostics, Danaher also operates Biotechnology and Life Sciences segments.
The analyst also noted that Sawyer Montgomery's tenure at Danaher is "long enough to understand the company's culture and operational rigor, and the Diagnostics business she has led can arguably be described as the best-performing segment within Danaher since she took over."
After retiring, Blair will serve as a senior advisor to the company until March 31, 2027, to assist with the transition.