GE Expands Healthcare Unit With Vital Signs Buyout (GE, VITL)
General Electric Co. (NYSE: GE) is finally doing a health care acquisition, albeit this one is smaller than some may have guessed (we are included). The company is acquiring Vital Signs Inc. (NASDAQ: VITL) for $860 million in cash or $74.50 per share.
Vital Signs will become part of the existing GE Healthcare’s Clinical Systems business. GE is essentially buying a portfolio to expand medical operations in monitoring, anesthesia, sleep therapy, and respiratory care.
If you review the 247wallst.com exclusive interview with GE’s CFO Keith Sherin, he outlined the hurdles and benchmarks for the company to do a deal and he also noted that medical did have the “green light” to do a deal in the sector. This is one that flew under our radar and the radar of others who were trying to peg which company GE would acquire.
Jon Ogg
July 24, 2008