GE Splits Into Three Companies
SCHENECTADY/BOSTON, MA – GE (NYSE:GE) announced on Nov. 9 its plan to form three industry-leading, global public companies focused on the growth sectors of aviation, healthcare, and energy.
GE will be pursuing a tax-free spin-off of GE Healthcare, creating a pure-play company at the center of precision health in early 2023, in which GE expects to retain a stake of 19.9%. The company will be combining GE Renewable Energy, GE Power, and GE Digital into one business, positioned to lead the energy transition, and then pursuing a tax-free spin-off of this business in early 2024. Following these transactions, GE will be an aviation-focused company shaping the future of flight.
“At GE we have always taken immense pride in our purpose of building a world that works. The word demands – deserves – we bring our best to solve the biggest challenges in flight, healthcare, and energy,” said GE Chairman and CEO H. Lawrence Culp, Jr. “By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees. We are putting our technology, expertise, leadership, and global reach to work to better serve our customers.”
As independently run companies, the businesses will be better positioned to deliver long-term growth and create value for customers, investors, and employees, with each benefiting from the following: deeper operational focus, accountability, and agility to meet customer needs; tailored capital allocation decisions in line with distinct strategies and industry-specific dynamics; strategic and financial flexibility to pursue growth opportunities; dedicated boards of directors with deep domain expertise; business- and industry-oriented career opportunities and incentives for employees; and distinct and compelling investment profiles appealing to broader, deeper investor bases.
GE’s headquarters was once located in Schenectady, nicknamed the “Electric City.” Their headquarters has since moved out of state to Boston, MA. For more information on GE, visit their website at www.ge.com.