GE Healthcare to acquire PAA Laboratories GmbH, broadening capabilities in growing biopharmaceutical manufacture segment.

Chalfont St Giles, UK – 16 August 2011 - GE Healthcare, a unit of General Electric Company (NYSE:GE), today announced it has reached an agreement to acquire PAA Laboratories, a developer and supplier of cell culture media for biomedical research and the fast-growing biopharmaceutical and...

GE Healthcare to acquire PAA Laboratories GmbH, broadening capabilities in growing biopharmaceutical manufacture segment.

Chalfont St Giles, UK – 16 August 2011 - GE Healthcare, a unit of General Electric Company (NYSE:GE), today announced it has reached an agreement to acquire PAA Laboratories, a developer and supplier of cell culture media for biomedical research and the fast-growing biopharmaceutical and vaccine manufacturing industry. The acquisition of PAA Laboratories will allow GE Healthcare to expand its offering of products and services for cell biology research and for the discovery and manufacture of biopharmaceuticals including recombinant proteins, antibodies and vaccines. The strong strategic fit between the two businesses, combined with expanded capabilities in product development and marketing, will offer significant long-term customer benefits. Financial terms were not disclosed.

PAA Laboratories develops and manufactures specialized and innovative cell culture products such as media, sera, growth supplements and reagents for use in biomedical research and in the production of protein-based pharmaceuticals. The company, which has world-class manufacturing facilities registered with the FDA, has recently implemented one of the world’s leading manufacturing facilities for powdered cell culture media to meet the growing demand for these products from the biopharmaceutical industry. PAA Laboratories’ products are complementary to GE Healthcare’s established technologies for cell biology research and biopharmaceutical purification. Combining the expertise of the two companies will enable GE Healthcare to offer a substantially wider range of integrated products and services to the biopharmaceutical manufacturing industry.

“The acquisition of PAA Laboratories is a significant step forward for our Life Sciences business and for biopharmaceutical manufacturing globally,” said Kieran Murphy, President and CEO of GE Healthcare Life Sciences. “GE Healthcare Life Sciences is well known for its expertise in the “downstream” processes of biopharmaceutical manufacturing. Adding “upstream” capabilities will enable us to provide an end-to-end, fully integrated service to our customers. We believe that an integrated approach, where we can help customers optimize every stage of their manufacturing process, has the potential to reduce cost of entry, deliver higher yields of finished product and reduce time to market.”

The global demand for media, sera and reagents for cell culture is predicted to grow from $2.3 billion in 2009 to an estimated $3.9 billion by 2015*. The acquisition of PAA Laboratories is consistent with GE's strategy to invest in high-technology, innovative businesses that deliver strong top-line growth and expanded margins. The acquisition also supports GE healthymagination, GE’s global initiative to reduce cost, increase access and improve the quality of healthcare worldwide.

Welcoming the acquisition, Rainer Burian, long-term CEO, PAA Laboratories said, "This is a great opportunity for the professional team of staff at PAA Laboratories and we are very excited to become part of GE Healthcare’s Life Sciences business. The Board of Directors of PAA Laboratories strongly believes that joining such a well-respected and recognized organization will give us significant opportunities to grow our business further with new technologies, products and services. The entire PAA Laboratories team looks forward to joining GE.”

The acquisition, which is subject to customary closing conditions including regulatory approvals, is expected to close in Q3 2011.

* Source BCC Research “The Dynamic Media, Sera, and Reagent Market in Biotechnology” July 2010

About GE Healthcare

GE Healthcare provides transformational medical technologies and services that are shaping a new age of patient care. Our broad expertise in medical imaging and information technologies, medical diagnostics, patient monitoring systems, drug discovery, biopharmaceutical manufacturing technologies, performance improvement and performance solutions services help our customers to deliver better care to more people around the world at a lower cost. In addition, we partner with healthcare leaders, striving to leverage the global policy change necessary to implement a successful shift to sustainable healthcare systems.

Our “healthymagination” vision for the future invites the world to join us on our journey as we continuously develop innovations focused on reducing costs, increasing access and improving quality around the world. Headquartered in the United Kingdom, GE Healthcare is a unit of General Electric Company (NYSE: GE). Worldwide, GE Healthcare employees are committed to serving healthcare professionals and their patients in more than 100 countries. For more information about GE Healthcare, visit our website at www.gehealthcare.com.

For a full press pack including an audio interview with, Dr. Nigel Darby, Vice President of BioTechnologies, and Chief Technology Officer, GE Healthcare Life Sciences, click here.

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About PAA Laboratories

PAA Laboratories, founded in 1988, specializes in the manufacture and worldwide distribution of cell culture products for research, development, diagnostic and biopharmaceutical production. The company processes and manufactures sera, synthetic media, protein-free media, biochemical supplements and reagents, all of which are used as cell nutrients in cell culture technology. PAA also actively develops new products to satisfy the demands of industrial customers. Today, the company’s products are manufactured in GMP-certified facilities based in Austria, Australia and Canada and are distributed through PAA subsidiaries and a network of exclusive and non-exclusive distributors. The company employs 215 people and had revenues of approximately $55 million in 2010. More information is available at www.paa.com

SOURCE

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