BOSTON, US — As independently run companies, the businesses would be better positioned to deliver long-term growth and create value for customers, investors, and employees alike.

GE have recently announced that their plan to form three industry-leading, global public companies focused on the growth sectors of aviation, healthcare, and energy.

According to the company, they will be pursuing a tax-free spin-off of GE Healthcare, creating a pure-play company at the center of precision health in early 2023. GE Renewable Energy, GE Power, and GE Digital will be combined into one business, intended to lead the energy transition and to eventually pursue a tax-free spin-off in early 2024.

The idea behind this separation, according to GE, is that as independently run companies, the businesses would be better positioned to deliver long-term growth and create value for customers, investors, and employees, because it would allow the respective companies to focus on the individual customer and market needs and to help focus investments more precisely into innovations to achieve that goal.

“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. 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,” said GE Chairman and CEO H. Lawrence Culp, Jr.

Culp will serve as non-executive chairman of the GE healthcare company upon its spin-off, while Scott Strazik will be the CEO of the combined Renewable Energy, Power, and Digital business. Peter Arduini will assume the role of president and CEO of GE Healthcare effective January 1, 2022, and John Slattery will continue as CEO of Aviation.

The spin-off of the Renewable Energy and Power business companies is planned for early 2024. Each independent company's respective capital structures, brands, and leadership teams should be determined and announced later.

Source: GE