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news.Science and technology firm Danaher has agreed to acquire the biopharma business of GE Life Sciences (GE Biopharma) for a cash purchase price of about $21.4bn.
Image: Danaher has agreed to acquire GE Biopharma for $21.4bn. Photo: courtesy of hin255 / FreeDigitalPhotos.net.
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Danaher seeks to help its customers solve complex challenges and enhance quality of life across the world.
GE Biopharma offers instruments, consumables, and software to facilitate research, discovery, process development and manufacturing workflows of biopharmaceutical drugs.
The business includes process chromatography hardware and consumables, cell culture media, single-use technologies, development instrumentation and consumables, and service.
GE Biopharma is anticipated to report annual revenue of around $3.2bn in the current fiscal year, with about 75% of these revenues considered recurring. It reported revenues of around $3bn in 2018.
The acquired business will run as a stand-alone operating firm within Danaher’s $6.5bn life sciences segment, which includes other firms such as Pall, Beckman Coulter Life Sciences, Sciex, Leica Microsystems, Molecular Devices, Phenomenex and IDT businesses.
Danaher president and CEO, Thomas Joyce, Jr said: “GE Biopharma is renowned for providing best-in-class bioprocessing technologies and solutions.
“This acquisition will bring a talented and passionate team as well as a highly innovative, industry-leading product suite to our Life Sciences portfolio, providing an excellent complement to our current biologics workflow solutions.”
GE intends to use the proceeds from the deal to reduce leverage and enhance its balance sheet.
Subject to regulatory approvals and customary conditions, the deal is expected to be completed in the fourth quarter of this year.
The Pharmaceutical Diagnostics, which is currently under GE Life Sciences, will continue within the GE Healthcare portfolio. The business offers contrast media and molecular imaging consumables for radiology customers, and it compliments GE Healthcare’s medical imaging business.
GE Healthcare provides imaging, monitoring and diagnostics solutions, as well as offers services, accessories, consumables, education, training and consulting. Excluding biopharma business, GE Healthcare generated around $17bn of revenue in 2018.
GE chairman and CEO Lawrence Culp, Jr. said: “We are retaining full flexibility for growth and strategic optionality with one of the world’s leading healthcare companies, and we are pleased that our BioPharma colleagues will join a strong, established team at Danaher.”
