GE to sell BioPharma business to Danaher for $21.4B

General Electric announced a definitive agreement on Monday to sell its BioPharma business to Danaher Corporation for a total consideration of $21.4 billion.

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The deal also includes $21 billion in cash as well as Danaher’s assumption of certain pension liabilities.

GE expects to use the proceeds from the transaction to reduce leverage and strengthen its balance sheet.

The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals and customary closing conditions.

“Today’s transaction is a pivotal milestone. It demonstrates that we are executing on our strategy by taking thoughtful and deliberate action to reduce leverage and strengthen our balance sheet,” said GE Chairman and CEO Larry Culp, Jr. “We are retaining full flexibility for growth and strategic optionality with one of the world’s leading healthcare companies, and we are pleased that our BioPharma colleagues will join a strong, established team at Danaher.”

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The BioPharma business being divested is part of GE Life Sciences. In 2018, the BioPharma business generated revenues of approximately $3 billion.