BOSTON – GE this week announced its plan to split into three different, industry-leading public companies focused on the growth sectors of aviation, healthcare and energy.
The companies will allow GE to:
- Pursue a tax-free spin-off of GE Healthcare, creating a pure-play company at the center of precision health in early 2023.
- Combine GE Renewable Energy, GE Power and GE Digital into one business, positioned, officials said, to lead the energy transition and pursue a tax-free spin-off in early 2024.
- Become an aviation-focused company shaping the future of flight, following these transactions.
GE Chairman and CEO H. Lawrence Culp, Jr., called the announcement a “defining moment” for GE, one for which he said the company “is ready.”
“We have always taken immense pride in our purpose of building a world that works,” Culp said. “The world demands – and deserves – we bring our best to solve the biggest challenges in flight, healthcare and energy.”
As independently run companies, GE officials said, the businesses will be “better-positioned to deliver long-term growth” for customers, investors and employees, with each benefitting from, among other things:
- Deeper operational focus, accountability and agility
- Tailored capital allocation decisions in line with distinct strategies.
- Strategic and financial flexibility to pursue growth opportunities.
- Distinct and compelling investment profiles appealing to broader, deeper investor bases.
“By creating three industry-leading, global public companies, eaceh can benefit from greater focus, tailored capital allocation and strategic flexibility to drive long-term growth and value for customers, investors and employees,” Culp said. “The momentum we have built up puts us in a position of strength to take this exciting next step.”