General Electric (NYSE:GE) announced today that it will acquire three businesses from Thermo Fisher Scientific (NYSE:TMO) for $1.06 billion. Thermo Fisher's HyClon cell culture (sera and media), gene modulation, and magnetic beads businesses will be rolled into GE Healthcare's life science sector, expanding its bioprocessing manufacturing presence in Asia, Europe, and the Americas.
General Electric determined the units would be a "strong strategic fit" within its organization, according to the company's press release. They will enable GE to accelerate development of products used in cell biology research and therapy, as well as biopharmaceutical manufacturing.
"Life Sciences is one of our strongest and fastest-growing business areas, driven by the world's demand for improved diagnostics and new, safer medicines," GE Healthcare President and CEO John Dineen said in a press release. "Combining GE's engineering expertise with our capabilities in life sciences is already bringing great benefits to industry, research and patients. This deal ... will help us realize our vision of bringing better health care to more people at lower cost."
Thermo Fisher Scientific noted that its decision to sell these businesses resulted from its acquisition of Life Technologies (UNKNOWN:UNKNOWN). Thermo announced last April that it would acquire the company for $13.6 billion, but noted in November it committed to divesting its cell culture (sera and media), gene modulation, and magnetic beads businesses to expedite the approval of the deal by the European Commission.
The three businesses had total revenue of approximately $250 million in 2013, and the transaction is expected to close in the first part of the year.
Fool contributor Patrick Morris owns shares of General Electric Company. The Motley Fool recommends Thermo Fisher Scientific. The Motley Fool owns shares of General Electric Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.