Abbott to Sell its Core Laboratory Diagnostics Business, Including Point of Care, to GE
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Abbott has announced that it will sell its core laboratory diagnostics business included in the Abbott Diagnostics Division and Abbott Point of Care to GE heathcare for $8.13 billion in cash, resulting in approximately $6 billion in after-tax proceeds.
Abbott's Molecular Diagnostics and Diabetes Care businesses are not part of the transaction and will remain part of Abbott.
"The laboratory diagnostics market has changed considerably in the last decade. Innovation in this segment will be increasingly driven by automation, system integration and a host of skills that GE can offer," said Miles D. White, chairman and chief executive officer, Abbott.
"As part of GE, Abbott's core diagnostics and point-of-care businesses will be powerfully positioned to sustain and extend their market success."
The sale of Abbott's core laboratory diagnostics business to GE is expected to close in the first half of 2007 and is subject to customary closing conditions, including regulatory approvals.
The transaction is expected to be neutral to Abbott earnings per share in 2007, excluding specified items, and accretive thereafter.
