General Electric Corp. today announced it is splitting into three separate publicly owned companies, with only its aviation unit retaining the GE brand name.
GE will spin off GE Healthcare in early 2023 and retain a 19.9 percent stake in the new company. And it will also combine GE Renewable Energy, GE Power and GE Digital into one separate business in early 2024.
Following these transactions, GE said it will be an aviation-focused company.
"Today is a defining moment for GE, and we are ready," GE Chairman and CEO H. Lawrence Culp, Jr. said in a statement.
"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 Aviation provides jet and turboprop engines, as well as integrated systems, for commercial, military, business and general aviation aircraft.
Culp will serve as non-executive chairman of the GE healthcare company upon its spin-off. He will continue to serve as chairman and CEO of GE until the second spin-off, at which point, he will lead the GE aviation-focused company going forward.
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