General Electric (GE) may be halting its plan for an initial public offering (IPO) of its healthcare sector in 2019, GE Chairman and CEO Larry Culp told CNBC on Feb. 25. The announcement came after the company made a deal to sell its biopharma business to Danaher for $21.4 billion.
"An IPO [for GE Healthcare] in 2019 looks unlikely at this point," Culp said to CNBC.
GE filed confidential paperwork for an IPO of its healthcare arm in December 2018. GE Healthcare generated around $19 billion in revenue and $3.4 billion in profit last year. While the offering was expected to happen in 2019, the acquisition of Danaher does not completely eliminate the possibility of an IPO in the future, reported CNBC.
“Today’s transaction is a pivotal milestone,” Culp said about the transaction with Danaher in a GE news release. “It demonstrates that we are executing on our strategy by taking thoughtful and deliberate action to reduce leverage and strengthen our balance sheet. We are retaining full flexibility for growth and strategic optionality with one of the world’s leading healthcare companies, and we are pleased that our BioPharma colleagues will join a strong, established team at Danaher.”