GE has announced a plan to form three global public companies focused on growth sectors that includes a separate healthcare company. The plan, according to a press release issued by the company, is on track to reduce debt by more than $75 billion by the end of 2021.
The plan includes the following:
- 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 percent; and
- 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.
- As independently run companies, the businesses will be better positioned to deliver long-term growth and create value for customers, investors, and employees.
Lawrence 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.
Peter Arduini will assume the role of president and CEO of GE Healthcare effective January 1, 2022. Scott Strazik will be the CEO of the combined Renewable Energy, Power, and Digital business while John Slattery continues as CEO of Aviation.
GE intends to execute the spin-offs of its Healthcare Systems in early 2023 and of the Renewable Energy and Power business in early 2024. The respective capital structures, brands, and leadership teams for each independent company will be determined and announced later. Where required to do so, GE will consult with employee representatives in line with its legal obligations before any final decisions are taken.