GE announced what its Chairman and CEO Larry Culp called a “defining moment,” with plans to form three industry-leading, global public companies focused on the growth sectors of aviation, healthcare and energy.
GE intends to spin off Healthcare to create “a pure-play company at the center of precision health,” Culp said. That spinoff is planned to happen in early 2023. Next, GE Renewable Energy, GE Power and GE Digital will combine into one business “positioned to lead the energy transition,” Culp said. GE plans to spin off that business in early 2024.
GE will then become “an aviation-focused company shaping the future of flight,” he said. Culp will serve as non-executive chairman of the GE healthcare company upon its spin-off. He will continue to serve as chairman and CEO of GE until the second spin-off, at which point he will lead the GE aviation-focused company going forward.
Following the spin-off transactions, the aviation-focused company will retain other assets and liabilities of GE today, including run-off insurance operations. Upon closing the GE Healthcare transaction, GE expects to retain a stake of 19.9% in the healthcare company to provide capital allocation flexibility. GE also intends that GE Healthcare will issue debt securities, the proceeds of which will be used to pay down outstanding GE debt.
