GE to Sell BioPharma Business to Danaher for $21.4 Billion

  • Accelerates GE’s strategy to reduce leverage and strengthen the
    balance sheet
  • Strong go-forward $17 billion healthcare business
  • Expected to close in the fourth quarter of 2019

BOSTON–(BUSINESS WIRE)–GE (NYSE:GE) announced a definitive agreement to sell its BioPharma
business to Danaher Corporation (NYSE: DHR) (“Danaher”) for a total
consideration of $21.4 billion, including $21 billion in cash as well as
Danaher’s assumption of certain pension liabilities. GE expects to use
the proceeds from the transaction to reduce leverage and strengthen its
balance sheet. The transaction is expected to close in the fourth
quarter of 2019, subject to regulatory approvals and customary closing

GE Chairman and CEO H. Lawrence Culp, Jr. said, “Today’s transaction is
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. 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. A more focused
portfolio is the right structure for GE, and we have many options for
maximizing shareholder value along the way.”

GE Healthcare President and CEO Kieran Murphy said, “The BioPharma
business has been a strong contributor to our success, and I am
confident this agreement represents a great opportunity for our valued
colleagues to flourish under the ownership of Danaher. GE Healthcare has
unsurpassed scale and scope and we will continue to focus on our
investments so that we deliver better outcomes and more capacity to a
world striving for Precision Health.”

The BioPharma business being divested is part of GE Life Sciences. In
2018, the BioPharma business generated revenues of approximately $3
billion. It is a leading provider of instruments, consumables and
software that support the research, discovery, process development and
manufacturing workflows of biopharmaceutical drugs. The business
comprises process chromatography hardware and consumables, cell culture
media, single use technologies, development instrumentation and
consumables, and service.

Pharmaceutical Diagnostics, currently part of GE Life Sciences, will
remain within the GE Healthcare portfolio. This business supplies
contrast media and molecular imaging consumables for radiology customers
around the world and is highly complementary to GE Healthcare’s medical
imaging business. GE’s pharmaceutical imaging agents are used in
approximately 90 million patient procedures each year.

GE Healthcare has a global installed base of more than 4 million
imaging, mobile diagnostic and monitoring units. In 2018 this business,
excluding BioPharma, generated approximately $17 billion of revenue with
mid-teens operating profit margins. The business is a leader in imaging,
monitoring and diagnostics, and also provides services, accessories,
consumables, education, training and consulting.

The transaction is not subject to a financing condition or a shareholder

PJT Partners LP, J.P. Morgan Securities LLC, Citigroup Global Markets
Inc. and Goldman Sachs acted as financial advisors and Paul, Weiss,
Rifkind, Wharton & Garrison LLP acted as legal advisor to GE on the

GE is also announcing the expected dates for the following upcoming
investor events:

  • Week of February 25: Annual report release, including annual letter
    and 10-K
  • March 5: H. Lawrence Culp, Jr., GE Chairman and CEO, to present at
    J.P. Morgan Aviation, Transportation & Industrials conference
  • March 7: GE Insurance teach-in conference call for investors
  • March 14: GE Outlook conference call
  • March 19: Jamie Miller, GE CFO, to present at Bank of America Merrill
    Lynch Global Industrials and EU Autos conference

More details on these events will be posted to GE’s Investor Relations
website at

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Forward-looking statements by their nature address matters that are, to
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of our Biopharma business announced today; our strategy and plans for
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