GE Buys Two of Abbott’s Diagnostics Units

GE said after the close of the stock markets on Thursday that it would buy Abbott Park, IL-based Abbott Laboratories’ in-vitro and point-of-care diagnostics businesses for $8.13 billion in cash.
   
Originally it was reported that GE was going to buy all four units of Abbott’s diagnostics’ division, but later that was changed to the two units. According to sources, Abbott did not consider the sale of its molecular diagnostics or diabetes businesses.
   
The deal, approved by both companies’ boards, is expected to be completed sometime during the first half of 2007.

The deal is designed to broaden GE’s diagnostic offerings and allows the Abbott operations to expand their markets, officials from both companies said.

JP Morgan analyst Michael Weinstein, in a note to clients, said the diabetes and molecular diagnostics businesses are the two highest growth areas in Abbott’s diagnostics portfolio.
 
Analysts said Abbott’s total diagnostics business had about $4 billion in 2006 sales, or roughly 13% of the company’s total.