GE (NYSE:GE) and Thermo Fisher Scientific (NYSE:TMO) announced today
that they have entered into an agreement for GE Healthcare to acquire
Thermo Fisher’s HyClone™ cell culture media and sera, and gene
modulation and magnetic beads businesses for approximately $1.06
billion. The acquisition will allow GE to expand its offering of
technologies for the discovery and manufacturing of innovative new
medicines, vaccines and diagnostics in its growing Life Sciences
business.
The complementary product offerings and strong strategic fit of the
acquired businesses will enable GE Healthcare to expand and accelerate
the development of innovative “end-to-end” technologies for cell biology
research, cell therapy and for the manufacture of innovative biological
medicines and vaccines. The acquisition is consistent with GE’s strategy
to invest in high-technology, innovative businesses that deliver strong
top-line growth and expanded margins. GE’s acquisition of the
businesses, which is subject to regulatory approvals, is anticipated to
close in the first part of 2014.
GE Healthcare’s century of leadership in medical diagnostic technology
includes its $4 billion Life Sciences business, which delivers
innovative products and services for the fast-growing diagnostics,
research and biopharmaceutical manufacturing sectors.
John Dineen, President and CEO, GE Healthcare said, “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.
Combining GE’s engineering expertise with our capabilities in life
sciences is already bringing great benefits to industry, research and
patients. 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.”
Cell culture plays a key role in manufacturing medicines to treat
diseases such as cancer and rheumatoid arthritis, as well as a new
generation of vaccines. Thermo Fisher’s well-respected HyClone™ cell
culture media and sera products are highly complementary to GE
Healthcare’s established technologies for cell biology research and
biopharmaceutical manufacturing, enabling GE to offer its customers a
substantially wider range of technologies and services.
GE Healthcare will also acquire Thermo Fisher’s gene modulation
technologies, which strongly complement GE’s established technologies
for drug discovery research, and the innovative Sera-Mag™ magnetic beads
product line, which extends GE’s existing technologies in protein
analysis and medical diagnostics.
Kieran Murphy, President and CEO of GE Healthcare’s Life Sciences
division said, “We look forward to the HyClone cell culture and other
businesses joining the GE family. They are a great fit with our key
areas of focus, and bring exciting new technologies, enhanced
manufacturing capabilities as well as a great group of talented people
to help grow our business.”
“In addition to providing us with new approaches to drug discovery and
biomedical research,” Murphy said, “this acquisition is a significant
step forward for our customers in biopharmaceutical manufacturing. They
will benefit immediately from an expanded range of “start-to-finish”
technologies that will help them improve product yields and reduce
time-to-market. By expanding our production facilities to three
continents, we will be able to offer the biopharmaceutical industry
greater confidence in the security of supply of cell culture media and
sera, a key part of their production process.”
The three acquired businesses generated combined annual revenues of
approximately $250 million in 2013.
About GE Healthcare
GE Healthcare provides transformational medical technologies and
services to meet the demand for increased access, enhanced quality and
more affordable healthcare around the world. GE (NYSE: GE) works on
things that matter - great people and technologies taking on tough
challenges. From medical imaging, software & IT, patient monitoring and
diagnostics to drug discovery, biopharmaceutical manufacturing
technologies and performance improvement solutions, GE Healthcare helps
medical professionals deliver great healthcare to their patients. For
more information about GE Healthcare, visit our website at www.gehealthcare.com
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