GE buys Abbott testing business

19 January 2007

General Electric (GE) is set to pay $8.13 billion for half of Abbott Laboratories' testing business.

The firm has bought Abbott's vitro diagnostics and point-of-care diagnostics divisions to broaden GE Healthcare's diagnostic offerings.

GE chairman and chief executive Jeffrey Immelt, said: "This acquisition is consistent with GE's strategy to invest in high-technology global infrastructure businesses that deliver strong top-line growth, earnings expansion and expanded margins.

"Abbott's diagnostics business is the premier platform in this industry and fits very well with our healthcare strategy. Abbott's global position in the growing diagnostics field is aligned with our objective to deliver a comprehensive array of diagnostic products to customers around the world."

Healthcare is one of GE's fastest growing businesses and in the first nine months of 2006 it accounted for 14.2 per cent of the firm's total profits and 9.9 per cent of its revenue.

Over the first weeks of 2007, GE has announced $14.83 billion worth of takeover deals.

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