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- General Electric on Monday said it would sell its biopharma business to Danaher for $21.4 billion.
- GE shares jumped 18% on the news, and Danaher was up 7%.
- Watch General Electric and Danaher trade live.
General Electric on Monday said it would sell its biopharma unit to Danaher for $21.4 billion in an effort to accelerate the ailing industrial conglomerate’s turnaround.
The deal includes $21 billion in cash as well as Danaher’s assumption of certain pension liabilities, General Electric said in a statement. Larry Culp, who joined GE as its CEO in October, served as CEO of Danaher from 2001 to 2014.
GE said it expected to use the deal’s proceeds to reduce debt and bulk up its balance sheet. The deal, subject to regulatory approval, is expected to close in the fourth quarter of this year.
Culp said the company would call off its planned GE Healthcare initial public offering, a plan it announced in December, Bloomberg reported. That plan would have created one of the world’s largest pharmaceutical giants.
Executives have sought to simplify and strengthen GE, whose stock has fallen 70% since mid-2016.
GE said in its quarterly earnings report last month that it planned to reduce the debt on its balance sheet, and in the fall it said it would slash its quarterly dividend to $0.01 a share and reorganize its power business.
Last June, General Electric said it would spin off its healthcare business and split from the oil giant Baker Hughes just one year after its acquisition. GE lost its place as a component of the Dow Jones Industrial Average that month.
GE shares jumped 18% early Monday. Danaher was up 7%.
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