GE life sciences expansion costs $1.06 billion

General Electric (GE) has bought three life sciences divisions from US company Thermo Fisher Scientific in a deal worth about $1.06 billion.

The businesses – cell culture (sera and media), gene modulation and magnetic beads – will be transferred to GE Healthcare, a unit of GE. Combined, the businesses’ 2013 revenue is estimated to be $250 million.

GE said the acquisition will allow it to expand its offering of technologies for the discovery and manufacturing of new medicines, vaccines and diagnostics.

Subject to regulatory approval, the deal is expected to close in the first part of the 2014, GE said in a statement.

Life sciences is one of GE’s strongest and fastest-growing business areas, driven by the world’s demand for improved diagnostics and new, safer medicines, noted John Dineen, president of GE Healthcare.

“Combining GE’s engineering expertise with our capabilities in life sciences is already bringing great benefits to industry, research and patients,” he said. “This deal makes a good business even better and will help us realise our vision of bringing better healthcare to more people at lower cost.”

Kieran Murphy, president of GE Healthcare’s life sciences division, added: “We look forward to the HyClone cell culture and other businesses joining the GE family. They are a great fit with our key areas of focus, and bring exciting new technologies, enhanced manufacturing capabilities as well as a great group of talented people to help grow our business.”

The deal is expected to make way for Thermo Fisher’s acquisition of Life Technologies, according to a Thermo statement.