GE will form three industry-leading public companies concentrated on three sectors: aviation, energy, and healthcare. GE will retain 19.9 percent of shares in the new healthcare company, a spin-off of GE Healthcare, which will be fully functional by early 2023. As for renewable energy, GE plans to merge GE Renewable Energy, GE Power, and GE Digital by early 2024. Later on down the line, GE will be a company focused on aviation and the future of flight.
The goals are to create long-term growth and better value for customers, investors, and employees. GE plans to deepen operational focus and accountability to rise to customer needs. Distinct strategies and industry-tailored features will be fulfilled through capital allocations. Growth opportunities will be achieved through tactical strategies and financial flexibility. Incentives and career opportunities will be available to employees. Investment profiles will be presented in a compelling and more distinct manner to broaden investment areas. Finally, the boards of directors will have a thorough understanding of each domain.
H. Lawrence Culp, Jr., GE Chairman and CEO, said, “At GE we have always taken immense pride in our purpose of building a world that works. The world demands—and deserves—we bring our best to solve the biggest challenges in flight, healthcare, and energy. 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. Today is a defining moment for GE, and we are ready. Our teams have done exceptional work strengthening our financial position and operating performance, all while deepening our culture of continuous improvement and lean. And we’re not finished—we remain focused on continuing to reduce debt, improve our operational performance, and strategically deploy capital to drive sustainable, profitable growth. We have a responsibility to move with speed to shape the future of flight, deliver precision health, and lead the energy transition. The momentum we have built puts us in a position of strength to take this exciting next step in GE’s transformation and realize the full potential of each of our businesses.”
GE plans on reducing debt by over $75 billion at the end of 2021. By 2023, the company will be a well-capitalized, three-part company.
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