Thread regarding General Electric Co. layoffs

Firesale Continues | Culp Sells BioTech Unit to Former Company Danaher

Will there be a GE left when Culp gets done selling pieces off???

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GE shares surge 10% after Danaher agrees to buy biopharma business for $21.4 billion

Danaher will buy the biopharmaceutical business of General Electric in a $21.4 billion deal, the companies announced on Monday.

The deal will see Danaher pay $21 billion in cash, as well as assume certain GE pension liabilities.

The GE Life Sciences unit will join Danaher's Life Science as a standalone business. The GE Biopharma unit is expected to generate about $3.2 billion in revenue this year.

GE shares jumped more than 10 percent in premarket trading from Friday's close of $10.17 a share. Danaher's stock also moved higher, rising 2.2 percent from its previous close of $113.48 a share.

"We are executing on our strategy by taking thoughtful and deliberate action to reduce leverage and strengthen our balance sheet," GE Chairman and CEO Larry Culp said in a statement.

Danaher approached GE with interest in acquiring the Life Sciences business last April, the Wall Street Journal reported, but GE did not pursue a deal at the time. At the time, GE chief financial officer Jamie MIller said GE had been attracting interest on some of its business units but was "looking to do deals that are smart for the company."

The deal's inclusion of some GE pension liabilities will be welcome news to investors. GE has hundreds of thousands of former and current employees covered by pension plans. At the end of 2018, pensions represented $21 billion of GE's $55 billion in industrial debt.

Danaher expects the deal to be complete by the fourth quarter of this year.

https://www.cnbc.com/2019/02/25/danaher-to-buy-the-general-electrics-bio-pharma-business-life-sciences-for-21point4-billion.html

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| 3741 views | | 10 replies (last February 26, 2019) | Reply
Post ID: @OP+XNuF6Jn

10 replies (most recent on top)

As somebody else said, this is the best deal GE has done in the last 20 years, and everyone should be happy about it.

Instead of going through an IPO process that might drag out or that might not net as much cash as desired, he did a clean sale of a division to a willing strategic buyer who had the cash to pay us. Strategic buyers pay more than financial buyers, so this is better than any deal we would do with a Private Equity firm. Also with the IPO there was always the risk of a market downturn that would spoil the IPO or hurt the share price of the shares GE would have retained. Those risks are now off the table.

As for what to do with the rest of healthcare, it can still be IPO’d if desired. Alternately, it is small enough now that a sale to a strategic buyer is possible.

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Post ID: @1mcz+XNuF6Jn

Immelt legacy continues

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Post ID: @omk+XNuF6Jn

@ Mr. Gupta - Exactly!! Is this even legal?

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Post ID: @bob+XNuF6Jn

General Electric (GE) shares surged on Monday after it announced the sale of its biopharmaceutical business to Danaher for $21 billion in cash.

GE chairman and chief executive Larry Culp — who managed Danaher for more than a decade before joining GE in October.

So let me get this straight, he sold a profitable division to a company he used to manage where he probably still holds millions in shares

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Post ID: @utb+XNuF6Jn

Immelt would have sold it for $10 Bill and claimed victory. What else is going to hacked off before GE does the IPO for healthcare or is that off the plate now.

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Post ID: @ont+XNuF6Jn

Life sciences generated about $3B out of the $20B from Healthcare. I must be missing something but how do you get $21B or 7X sales not to mention Danaher is taking on some of the debt and Pension liabilities. So, assuming the blance of the $17B generates profits and free cashflow this could be a very good deal.

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Post ID: @dnw+XNuF6Jn

Culp got double what analysts were predicting for life sciences...

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Post ID: @pnk+XNuF6Jn

Firesale? This seems to be one of the best deals GE has made in over 20 years

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Post ID: @fww+XNuF6Jn

I wonder how much stock culp still has with Danaher.....

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Post ID: @sgw+XNuF6Jn

Still burning the furniture for temporary warmth. GE is going to miss that $3.2 billion in revenue next year...

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Post ID: @rrn+XNuF6Jn

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