General Electric Company
Thermo Fisher Scientific
) recently entered into an agreement for GE Healthcare to buy
Thermo Fisher's gene modulation, HyClone cell culture and
magnetic beads businesses for about $1.06 billion. This
acquisition is expected to close in the first half of 2014.
HyClone is used to manufacture vaccines and drugs that treat
diseases. The gene modulation business complements the existing
drug discovery work of GE Healthcare. The magnetic beads unit
will help the company in the areas of protein analysis and
diagnostic. In 2013, the three acquired businesses generated
combined annual revenues of approximately $250 million.
This acquisition is in line with General Electric's strategy to
invest in high-technology, innovative businesses that deliver
strong top-line growth and expand margins. It will help the
company to expand and accelerate the development of innovative
technologies for cell biology research, cell therapy and for the
manufacture of innovative biological medicines and vaccines.
With this acquisition, General Electric will be able to offer its
customers a wider range of technologies and services. The
units will become part of GE Healthcare, and help the company
offer new medicines, vaccines and diagnostics as part of its
expanding life sciences business.
Life Science is one of the strongest and fastest-growing
business areas and this deal will further help the company
deliver better healthcare services at lower cost. Additionally,
General Electric aims to expand in fast-growing Life Sciences
sectors; and extend bio processing manufacturing footprint in
Asia, the Americas and Europe.
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General Electric is one of the largest and most diversified
technology and financial services corporations in the world with
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content, and
industrial products. Its segments include Energy
Infrastructure, Aviation, Healthcare, Transportation, Home &
Business Solutions and GE Capital.
GE Healthcare provides transformational medical technologies and
services to meet the demand for increased access, enhanced
quality and affordable healthcare facilities across the globe.
General Electric currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the industry include
Raven Industries Inc
). Both these stocks carry a Zacks Rank #2 (Buy).