General Electric Divests Biotech Business to Danaher for $21.4 Billion

General Electric shares are higher by 8% after the announcement to divest its biotechnology business to Danaher for $21.4 billion.  The cash strapped industrial giant secured $20 billion in cash and roughly $400 million in pension liabilities.   With over $100 million in debt, General Electric CEO Culp delivered his first  big step in addressing the companies balance sheet.

General Electric also is pulling the plug on the healthcare IPO plan, a move that is positively viewed on the street as that business is healthy and could help continue to deliver cash flow for them.

GE may also not be done wheeling and dealing as they are exploring options to sell imaging business.

The deal was also very positive for Danaher and will deliver $0.45 to $0.50 in the first full year post acquisition.  Shares of Danaher were also higher by 8%, with the S&P 500 index rising by 0.6%.

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Ed Moya

Ed Moya

Senior Market Analyst - The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geopolitical events and monetary policies around the world. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC and Bloomberg, and is often quoted in leading publications including the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University.
Ed Moya