Storied General Electric To Be Split Into Three Companies

The storied American company General Electric (GE) will divide itself into three public companies focused on aviation, healthcare and energy, Michelle Chapman reported for the Associated Press (AP).

Photo Insert: GE Chairman and CEO Lawrence Culp Jr.

The company, founded in 1892, has refashioned itself in recent years from the sprawling conglomerate created by Jack Welch in the 1980s to a much smaller and focused entity. It was heavily damaged by the financial crisis, the Boston Globe also reported.

Based in Boston, the company said Tuesday that it will spin off its healthcare business in early 2023. The healthcare business is its third-largest segment — producing diagnostic imaging systems including magnetic resonance, X-ray, digital mammography, and nuclear imaging.

GE also said that it will spin off its energy segment — which includes its renewable energy, power, and digital businesses — in early 2024. It will maintain a 19.9% stake in the healthcare unit.

“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, chairman and CEO Lawrence Culp Jr. said in a prepared statement.

Culp will become the non-executive chairman of the healthcare company. Peter Arduini will serve as president and CEO of GE Healthcare effective January 1, 2022. Scott Strazik will become CEO of the combined renewable energy, power, and digital business.

Culp will lead the aviation business along with John Slattery, who will remain its CEO.

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