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GE Announces Plans to Form Three Public Companies

Steve Winoker
November 09, 2021

Today GE announced plans to form three industry-leading, global, investment-grade public companies focused on the growth sectors of aviation, healthcare and energy. Please join us at 8:15 AM as GE Chairman and CEO Larry Culp and CFO Carolina Dybeck Happe provide further details. Materials are now posted on our GE Investor Relations website.

This is a defining moment for GE, building on the significant momentum from our strengthened financial position and operating performance. We’ll pursue a tax-free spin-off of GE Healthcare, creating a pure-play company at the center of precision health. We’ll combine GE Renewable Energy, GE Power, and GE Digital into one business, positioned to lead the energy transition. GE intends to execute the spin-off of Healthcare in early 2023 and the spin-off of the Renewable Energy and Power 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, each benefitting from:

  • Deeper operational focus, accountability, and agility to meet customer needs;
  • Tailored capital allocation decisions in line with distinct strategies and industry-specific dynamics;
  • Strategic and financial flexibility to pursue growth opportunities; 
  • Dedicated boards of directors with deep domain expertise;
  • Business- and industry-oriented career opportunities and incentives for employees; and
  • Distinct and compelling investment profiles appealing to broader, deeper investor bases.

In today’s portfolio of businesses, GE is on track to reduce debt by more than $75 billion by the end of 2021 and is now on track to bring its net-debt-to-EBITDA* ratio to less than 2.5x in 2023. GE will also continue to drive operating improvements for sustainable profitable growth, and the company now expects to achieve high-single-digit free cash flow margins* in 2023. As a result, GE is in a strong position to execute this plan to form three well-capitalized, investment-grade companies. 

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

Thank you for your continued interest in GE.

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