The new public entities will be focused on aviation, health care and energy.
For nearly 130 years, General Electric has been one of the biggest makers of American things. Now, it’s breaking itself apart. Long a symbol of American ingenuity, the industrial powerhouse has put its stamp on products ranging from jet engines to lightbulbs, kitchen appliances to X-ray machines. The conglomerate, which traces its lineage back to Thomas Edison, was once the pinnacle of business success, renowned for its steady returns, corporate prowess and relentless pursuit of growth. But GE’s expansive reach has come to haunt it in recent years as it struggled to slim its business operations and pay down massive debt. Now, in what chairman and chief executive Larry Culp referred to as a “defining moment,” GE has concluded that it can unlock the most value by breaking itself apart. GE Healthcare is slated to be spun off in early 2023, the company announced Tuesday, while the renewables and power units will be formed into new energy business in early 2024. The remaining business, GE, will focus on aviation and be led by Culp. “The world demands – and deserves – we bring our best to solve the biggest challenges in flight, health care, and energy,” Culp said in a statement. “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.” GE products have brushed against every corner of modern life: radio and cable, planes, power, health care, computing, financial services. One of the original components of the Dow Jones industrial average, its shares were once among the most widely held in the country. In 2007, before the financial crisis, GE was the second-most valuable company in the world, alongside ExxonMobil, Royal Dutch Shell and Toyota.
