By Adedapo Adesanya
General Electric (GE) has announced plans to restructure its operations into three industry-leading, global, investment-grade public companies focused on the growth sectors of healthcare, energy, and aviation.
In a statement on Monday, GE revealed that its healthcare business is to be named GE HealthCare; GE’s portfolio of energy businesses, including GE Renewable Energy, GE Power, GE Digital, and GE Energy Financial Services, will come together as GE Vernova; while its aviation business is to be named GE Aerospace.
By creating three separate companies, each will benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value.
Also, all the three planned companies will continue to benefit from GE’s heritage and global brand valued at nearly $20 billion.
Additionally, GE announced that following the completion of the planned spin-off, shares of GE HealthCare will be listed on The Nasdaq Global Select Market under the ticker symbol — GEHC.
By listing on Nasdaq, GE HealthCare will benefit from the exchange’s profile and track record as a market for innovative, technology-led public companies, particularly in the healthcare sector.
GE intends to execute the tax-free spin-off of GE HealthCare in early 2023, creating an independent company driving innovation in precision health to improve patient outcomes and address critical patient and clinical challenge.
In early 2024, GE plans to execute the tax-free spin-off of GE Vernova, GE’s portfolio of energy businesses, which together with its customers provides one-third of the world’s electricity and is focused on accelerating the path to reliable, affordable, and sustainable energy.
GE will also be an aviation-focused company called GE Aerospace. With an installed base of 39,400 commercial and 26,200 military aircraft engines, the company will continue to play a vital role in supporting the industry through a historic recovery while shaping the future of flight.
Speaking on the plans, GE Chief Marketing Officer, Ms Linda Boff said, “Over the course of the last six months, we engaged in a thorough, customer-led process to understand the intrinsic value of the GE brand for our planned future companies.
“Based on data and analysis drawn from thousands of conversations, it became clear that the GE name and our century-plus old Monogram represent a legacy of innovation, symbol of trust by global customers, pride for our team, and a talent magnet for future leaders. We are proud these future businesses will be able to build on GE’s DNA of innovation.”
Aduragbemi Omiyale