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GE announces biggest acquisition under CEO Culp By Reuters

by Mike Robinson

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© Reuters. FILEPHOTO: This is the logo of U.S. conglomerate General Electric, taken at Belfort, France’s company energy branch on February 5, 2019. REUTERS/Vincent Kessler/File Photo

By Rajesh Kumar Singh and Abhijith Ganapavaram

(Reuters) -General Electric Co on Thursday announced a $1.45 billion cash deal to acquire ultrasound company BK Medical to bolster its medical imaging business, signaling a shift away from the company’s exclusive focus on repairing its balance sheet.

It is the largest acquisition made by Chief Executive Larry Culp since 2018. He has been primarily focused upon paying down its debt.

Culp announced that Boston’s-based firm would be “playing more offense” as it seeks to increase its industrial business after GE’s merger of the jet-leasing division with Ireland’s AerCap in March for $30 billion.

The deal on Thursday is also aimed to expand GE’s presence in precision healthcare, which is valued at tens or billions of dollar. It is another business priority under Culp.

GE shares rose 4.8% to $103.24 during morning trading.

Altaris Capital Partners is a healthcare investment firm that owns BK Medical. BK Medical makes ultrasound equipment used during surgical procedures.

GE claimed that the deal would expand the company’s ultrasound business to include therapeutic and surgical interventions.

BK Medical will provide a return in the single digits for its investment. It is expected to close by five years. It is anticipated that the transaction will close by 2022.

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