GE to sell biopharma unit to Danaher for $21.4 billion

General Electric (GE) will sell its biopharma business, which generated $3 billion in revenues for the conglomerate last year, to Danaher in a $21.4 billion deal.

GE said in a statement on Monday, February 25, that it will use the proceeds from the transaction to strengthen its balance sheet.

The transaction, which is expected to close in the fourth quarter of this year, will be subject to regulatory approvals and customary closing conditions.

The biopharma business GE is selling is part of its life sciences division. It provides instruments, consumables and software that support the research, discovery, process development and manufacturing of biopharmaceutical drugs.

It has helped companies mass produce biopharmaceuticals like Remicade (infliximab) and Rituxan (rituximab) for the treatment of autoimmune diseases.

According to a  statement from Danaher, GE’s biopharma business will be established as a stand-alone operating company within Danaher's $6.5 billion life sciences segment.

Danaher’s president and CEO, Thomas Joyce, said the acquisition will bring a “highly innovative, industry-leading product suite” to its life sciences portfolio.

"We expect GE Biopharma to advance our growth and innovation strategy in an important and highly attractive life science market,” Joyce said.

GE’s chairman and CEO, Lawrence Culp, described the transaction as “a pivotal milestone”.

“It demonstrates that we are executing on our strategy by taking thoughtful and deliberate action to reduce leverage and strengthen our balance sheet,” Culp added.

Kieran Murphy, CEO and president of GE Healthcare, welcomed the decision.

“The biopharma business has been a strong contributor to our success. I am confident this agreement represents a great opportunity for our valued colleagues to flourish under the ownership of Danaher,” Murphy said.

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