GE biopharma unit goes in latest trimming

Source: Xinhua | 2019-02-26

General Electric is selling its biopharma business to Danaher Corp for US$21.4 billion as it continues to sell off chunks of a once-sprawling conglomerate.

The biopharma unit, part of GE Life Sciences, generated revenue of about US$3 billion last year. Danaher said after tax benefits, the deal will have a price tag that is closer a US$20 billion. The mostly-cash transaction is expected to close in the fourth quarter.

Danaher, a medical technology company based in Washington, said GE’s biopharma segment will operate as a separate company within Danaher’s US$6.5 billion Life Sciences division.

GE has shrunk considerably since becoming entangled in the financial crisis a decade ago and is seeking to divest even more of its businesses. Last fall, GE sold part of its Healthcare Equipment Finance business to TIAA Bank and agreed to sell its Current, powered by GE business — part of the company’s lighting business — to American Industrial Partners.

In October, the company slashed its quarterly dividend and announced it was restructuring its power business shortly after ousting CEO John Flannery after only about a year on the job. After being named as the new CEO, Larry Culp said GE needed to simplify its business structure even more. GE said this month that it would downsize its world headquarters in Boston.