Danaher pharma deal is a win-win remedy

GE Surges After Agreeing to $21.4 Billion Sale of Bio Pharma UnitMore

The sell-off throws cold water on the giant's plans to spin out GE Healthcare through an IPO, Culp said in a Monday interview with Bloomberg. "It really turns the page now for GE to address liquidity concerns", Heymann adds.

GE was up 26% this year through Friday.

GE, which rejected an approach by Danaher for the business a year ago, said its stance changed after Culp was appointed CEO and GE board became more open to a deal, reports citing close to the negotiations said.

GE jumped 6.4 percent to $10.82 at the close in NY, the highest level since October 29.

- The shares have advanced 34 per cent this year through February 22, the biggest gain on a Standard & Poor's index of US industrial companies. Last fall, GE sold part of its Healthcare Equipment Finance business to TIAA Bank and agreed to sell its Current, powered by GE business - part of the company's lighting business - to American Industrial Partners. The Boston-based manufacturer has been reeling from mounting debt, cash shortfalls and a deep slump in the market for gas turbines.

Danaher estimates the acquisition will reduce GAAP diluted net earnings per share by approximately $1.15 to $1.20 but will be accretive to non-GAAP, adjusted diluted net earnings per share by approximately $0.45 to $0.50 in the first full year post acquisition. "This stock reaction underscores the win-win nature of the deal", Deane Dray, an analyst at RBC Capital Markets, tells the Los Angeles Times' Richard Clough. The GE biopharma unit is expected to generate about $3.2 billion in revenue this year.

This Is the World’s First 1TB microSD Card
Western Digital 's sub-brand SanDisk and Micron have both announced their 1TB microSD cards. Micron and Western Digital are both prepping 1TB MicroSD cards, but they won't be cheap.

The deal is expected to close by the end of the year.

General Electric CEO Larry Culp is turning to his former company as he continues to dismantle GE. GE isn't planning other big sales, he said. GE completed the transportation deal Monday as it merged the locomotive unit with Wabtec Corp. The health-care business was one of GE's better cash-generating assets and, one way or another, it likely will be gone eventually.

"We're going to focus on improving our core imaging business while we evaluate other options". 'So folks don't look at us like a desperate seller, ' he said.

Additionally, GE announced plans to provide shareholders with its 2019 forecast on March 14. It bought Cepheid, a molecular diagnostics and medical testing company, for about $4 billion in 2016. They say Danaher will acquire the division that makes testing equipment for biopharmaceutical products.

GE's decision to sell GE BioPharma to its CEO's old company may raise eyebrows among investors. The unit makes everything from lab supplies to complex cell-processing technologies that are used to manufacture and test cutting-edge, boutique medicines.

The bulk of the deal's financing will come from Danaher's available cash and proceeds from the issuance of debt or new credit facilities. "It lost two-thirds of its market value in the last two years amid a series of operational and investment missteps".

Related:

  • Republican Senator Says He’ll Vote Against Trump’s National Emergency

    Republican Senator Says He’ll Vote Against Trump’s National Emergency

    Other Republicans have voiced concerns about the move by Trump, but so far they have not committed to voting for the resolution. The declaration would give Trump access to billions of dollars more than Congress approved to build his proposed wall.
    Huawei Mate X: Price, Release Date and More

    Huawei Mate X: Price, Release Date and More

    But more importantly, the 6.6-inch display on the front that you get when folded beats the Galaxy Fold's tiny 4.6-inch display . If the Galaxy Fold launches with such a blemish on its screen, then Samsung better not advertise it with a truly flat display.
    Trump Reverses Decision on Syria Pullout, Plans to Keep 400 Troops

    Trump Reverses Decision on Syria Pullout, Plans to Keep 400 Troops

    It's a very small, tiny fraction of the people we have and a lot of people like that idea and I'm open to ideas". Joint Chiefs of Staff, has been in talks with European counterparts about the safe zone in northeastern Syria.
  • All About Bradley Cooper's Whirlwind Marriage to Jennifer Esposito

    All About Bradley Cooper's Whirlwind Marriage to Jennifer Esposito

    And we think this picture pretty much sums up just how comfortable Irina is in her relationship. Afterwards, Jennifer gushed about the 'amazingly attractive , intimate performance'.
    Khloe Kardashian Responds To Fans Amid Tristan Thompson And Jordyn Woods Drama

    Khloe Kardashian Responds To Fans Amid Tristan Thompson And Jordyn Woods Drama

    Reports from various U.S. media say that Jordyn is moving out of Kylie's guest house to live with her mother. The latest however, appears to have backfired on Khloe after she shared another string of heartfelt quotes.
    Manchester United forward Marcus Rashford to miss Crystal Palace game?

    Manchester United forward Marcus Rashford to miss Crystal Palace game?

    Liverpool had the chance to reassert themselves in the Premier League with a win over Manchester United . He said: "A clean sheet is pleasing because it's not an easy place to come".
  • Elon Musk in trouble with SEC over another tweet

    Elon Musk in trouble with SEC over another tweet

    A legal document filed in the Southern District of NY asks a judge to hold Musk in contempt of court for the February 19 tweet. The SEC seized on the initial tweet, and within days investigators were asking Tesla whether the tweet had been pre-approved.
    Former Staffer Claims Trump Kissed Her Without Consent

    Former Staffer Claims Trump Kissed Her Without Consent

    Despite trying to turn her head and avoid the interaction, Johnson said Trump managed to kiss her on the side of her mouth. According to the lawsuit, Trump visited one of these RVs in Tampa before a rally there when the unwanted kiss took place.
    United Kingdom  parliament must restore common sense to Brexit - Labour lawmaker

    United Kingdom parliament must restore common sense to Brexit - Labour lawmaker

    He wrote in the Sunday Mirror: "This week we have come together in the national interest, to say "enough is enough". Let us now redouble our efforts to build on the progress made and get the Stockholm agreements implemented in full.
  • Kelly Enters Not Guilty Plea On Sexual Abuse Charges

    These new charges come one week after the emergence of a rape tape that allegedly features Kelly and a minor. Cook County State's Attorney Kim Foxx spoke about the charges at a brief press conference on Friday.
    Madonna and Lady Gaga Reunite

    Madonna and Lady Gaga Reunite

    But she added: "So the thing with me and Madonna .is that I admired her always". "I just will not be compared to anyone anymore". She continued, "I hope that everyone there in Sydney feels so much joy and celebrates all sexual identities".
    Smith in the mix in WGC Mexico

    Smith in the mix in WGC Mexico

    Meanwhile in Brisbane, Daniel Nisbet leads the Queensland PGA Championship by two shots going into the final round today. He hit trees with three consecutive shots and had to two-putt from across the green to salvage a double bogey.

Comments

Latest news

Russian official accuses U.S. of preparing military intervention in Venezuela
In contrast, Russia, Belarus, Bolivia, Iran, China, Cuba, Nicaragua, El Salvador, Syria and Turkey voiced support for Maduro.

Scott Brown's Priceless Reaction to Neil Lennon
He will work with assistant manager John Kennedy and first-team coach Damien Duff until the end of the season. The atmosphere is the best in the world, I got lost in the goal.

Bencic upsets Kvitova to lift Dubai title
Saturday's title - the third of her career - will see her jump to 23 in the new world rankings from her current spot of 45th. The doubles final was won by Su-Wei Hsieh and Barbora Strycova, who defeated Lucie Hradecka and Ekaterina Makarova 6-4 6-4.

Boeing 767 Crashes Near Houston
Debris was littered across an nearly mile-long stretch in Trinity Bay, according to Chambers County sheriff Brian Hawthorne . CT on Saturday when Atlas Air Flight 3591, a Boeing 767, went down in Trinity Bay near Anahuac, a city in Chambers County.

Trump delay on Chinese tariffs boosts hope of trade war truce
US stock increases followed huge boosts Monday in China's stock markets and modest gains in other Asian and European markets. Volume on US exchanges was 7.36 billion shares, compared with the 7.32 billion average for the last 20 trading days.

White House slams Michael Cohen as 'disgraced felon' and 'convicted liar'
Michael Cohen , former attorney for President Donald Trump , leaves the Monocle restaurant on Capitol Hill on February 21. Cohen pleaded guilty past year to criminal charges including tax evasion, bank fraud and campaign finance violations.

English Premier League Report: Burnley v Tottenham Hotspur 23 February
Meanwhile, Tottenham will get the chance to prove Sutton wrong when they go to Stamford Bridge to face Chelsea on Wednesday night. Rafa Benitez was desperate to sign Miguel Almiron last month - and everyone at St James's Park on Saturday saw why.

Jeremy Corbyn says Labour would back a second Brexit referendum
Its leader said the party would back a second referendum related to leaving the European Union , reports the Guardian .

LG unveils dual-screen 5G smartphone
Hand ID is another new feature, and uses a 3D biometric sensor system that scans the palm of your hand to unlock your phone. LG has integrated something they're calling a TOF Z camera and infrared sensors in the notch on the front of the G8 ThinQ .

Harry and Meghan in Morocco on last official trip before birth
By providing the public with that example, they tried to change the perspective from which she is seen in public. She took the moment with the girls to show off a new tattoo she had received moments earlier.

Mass. native Ruth E. Carter wins an Oscar for ‘Black Panther’
That changed tonight, when Hannah Beachler won Best Production Design for her Afrofuturism work in Black Panther . That might not have been possible in the past, but Black Panther is showing that it's certainly possible today.

Watch the hilarious Olivia Colman Oscar speech that is winning the internet
While Close gave an extraordinary performance in The Wife , the film was not the runaway hit that The Favourite turned out to be. It appeared Colman was just as surprised with her win as the rest of the room, as she blushed profusely and appeared flustered.

Microsoft workers demand it drop USD 480 million US Army contract
A group of Microsoft Corp. employees are demanding that the company abandon a $480 million contract with the U.S. But the document appears to mark the latest employee-led protest effort at a USA tech giant.

Celtic boss Brendan Rodgers responds to Leicester City link
Despite guiding the Toffees to an eighth-place finish Allardyce was criticised for his style of play on Merseyside. First-team coaches Mike Stowell and Adam Sadler are set to take temporary charge of the squad.

Messi’s Hat-trick Earns Barcelona 4-2 Victory at Sevilla
We have been on a run - if we're being honest - in which we have not been playing our best football. He has also struck six trebles for Argentina.

Other news