This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Deal: GE Picks Up $1B in Thermo Fisher Assets

Stocks in this article: GE TMO CFN LIFE

NEW YORK (The Deal) -- General Electric  (GE - Get Report) on Monday continued its push to expand its healthcare operation, agreeing to acquire certain life science assets of Thermo Fisher Scientific  (TMO - Get Report)for $1.06 billion in cash.

The deal includes Waltham, Mass.-based Thermo Fisher's cell culture, gene modulation and magnetic bead businesses. The units, part of Thermo Fisher's analytical technologies segment, generated combined revenue of about $250 million in 2013.

Fairfield, Conn.-based GE has been seeking to refocus its sprawling collection of businesses since the economic downturn, and looking to divest its consumer finance operations and to grow in healthcare and energy. The company said the Thermo Fisher units would be folded into its $4 billion-sales GE Healthcare life sciences business, giving it a more complete portfolio of tools used for cell biology research, cell therapy and for the manufacture of new biological medicines and vaccines.

"Life Sciences is one of our strongest and fastest-growing business areas, driven by the world's demand for improved diagnostics and new, safer medicines," GE Healthcare CEO John Dineen said in a statement. "This deal makes a good business even better and will help us realize our vision of bringing better healthcare to more people at lower cost."

GE has sold some lower-margin health units, including a November deal to divest its single-patient-use consumables for respiratory care and anesthesiology business to CareFusion  (CFN - Get Report) for about $500 million.

Thermo Fisher was required to sell the units as part of an agreement with European regulators to win approval for its $13.6 billion purchase of genetic testing equipment Life Technologies (LIFE). That deal remains subject to U.S. regulatory approval, but Thermo said that based on discussions with Federal Trade Commission representatives it does not believe any additional divestitures will be required.

The deal for Life, which was announced last April, is expected to close in the current quarter.

Written by Lou Whiteman.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs