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GE May Sell Spacelabs to Meet Concerns of European Regulators

By HospiMedica staff writers
Posted on 31 Jul 2003

In order to get regulatory approval from the European Commission (EC) for its proposed US$2.3 billion acquisition of Instrumentarium (Helsinki, Finland), GE Medical Systems (Waukesha, WI, USA) is rumored to be considering the sale of Spacelabs (Bothell, WA, USA), a division of Instrumentarium.

Spacelabs was acquired by Instrumentarium in July 2002. The company makes and markets products for emergency and critical care, including monitoring and anesthesia equipment, as well as perioperative, neonatal, and obstetrical products. In 2002, the company had total revenues of $242 million.

GE is a major global supplier of medical imaging systems. The company's 2001 sales were $8 billion. By 2005, GE is aiming for sales to grow to about $15 million.

The European Commission has voiced its concerns that once combined, GE and Instrumentarium would have a large share of patient monitoring devices and imaging equipment used in hospitals and might be able to squeeze out smaller suppliers. The deadline for any proposals from GE is in mid-August. US regulators have not yet approved the deal, either.

Related Links:
Instrumentarium
GE Medical Systems
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