General Electric Co. (NYSE: GE) is finally doing a health care acquisition. This merger is much smaller than we would have assumed based upon prior discussions. 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 my exclusive interview with GE's CFO Keith Sherin, he did outline the hurdles and benchmarks for its acquisition targets 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.
For whatever it's worth, Jim Cramer came on CNBC's MAD MONEY last night backing G.E. based upon it not recovering with other financial stocks and on other issues.
GE Healthcare back on buyout path
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