(Reuters) – General Electric Co said on Monday it was selling its biopharma business to Danaher Corp for $21.4 billion (£16.4 billion), the company’s biggest asset sale since it announced plans to break up the conglomerate last June.
The company’s shares rose 10 percent in response.
The biopharma business, part of its life sciences unit, generated revenue of about $3 billion in 2018. It makes instruments and software that support the research and development of drugs.
“A more focused portfolio is the right structure for GE, and we have many options for maximizing shareholder value along the way,” Chief Executive Officer Lawrence Culp said.
The other business housed in the life sciences unit, which makes molecular imaging consumables for radiology customers, will remain within the company’s healthcare portfolio, GE said.
Danaher develops technology for the dental, life sciences, diagnostics and environmental industries.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)