Danaher to Acquire GE's BioPharma Business for $21.4 Billion

GE Announces Definitive Agreement to Sell BioPharma Business to Danaher Corporation (NYSE: DHR) for $21.4 Billion, Including $21 Billion in Cash and Assumption of Certain Pension Liabilities by Danaher; GE Aims to Use Proceeds to Reduce Leverage and Strengthen Its Balance Sheet; Transaction Expected to Close in Q4 2019, Subject to Regulatory Approvals and Customary Closing Conditions

H. Lawrence Culp, Jr., Chairman and CEO of GE, stated: “Today’s transaction marks a key milestone. It demonstrates that we are executing our strategy by taking thoughtful and deliberate actions to reduce leverage and strengthen our balance sheet. We maintain full growth flexibility and strategic optionality as one of the world’s leading healthcare companies, and we are pleased that our BioPharma colleagues will join Danaher’s strong, established team. Targeted adjustments to GE’s portfolio are necessary, and we have numerous options to maximize shareholder value.”

Kieran Murphy, President and Chief Executive Officer of GE HealthCare, stated, “The BioPharma business has been a strong contributor to our success, and I believe this agreement provides an excellent opportunity for our valued colleagues to thrive under Danaher’s leadership. With its unparalleled scale and scope, GE HealthCare will continue to focus on our investments to deliver better outcomes and greater capabilities for a world pursuing precision health.”

The divested BioPharma business was part of GE Life Sciences. In 2018, the BioPharma business generated approximately $3 billion in revenue. It is a leading supplier of bioprocessing instruments, consumables, and software, supporting research, discovery, process development, and manufacturing workflows for biopharmaceutical companies. The business includes process chromatography hardware and consumables, cell culture media, development instruments and consumables, as well as services.

Pharmaceutical Diagnostics, currently part of GE Life Sciences, will remain within the GE Healthcare portfolio. This business provides contrast agents and molecular imaging consumables to radiology customers worldwide and is highly complementary to GE Healthcare’s medical imaging operations. GE’s diagnostic imaging agents serve approximately 90 million patients annually.