RTTNews | Nov 9, 2021 07:24AM EST

07:24 Tuesday, November 9, 2021 (RTTNews.com) - American conglomerate General Electric Co. (GE) on Tuesday said it plans to create three global public companies focused on aviation, healthcare, and energy. With this latest move, GE aims to form, GE Aviation, GE Healthcare, and the combined GE Renewable Energy, GE Power, and GE Digital businesses.

Pursuing a tax-free spin-off of GE Healthcare, the New York-headquartered GE is set to create a pure-play company at the center of precision health in early 2023, in which GE expects to retain a stake of 19.9 percent.

The company also aims to combine GE Renewable Energy, GE Power, and GE Digital into one business, and then pursue a tax-free spin-off of the business in early 2024. Following these two transactions, GE will be an aviation-focused company, the company said.

GE Chairman and CEO H. Lawrence Culp, Jr. commented: "... 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."

With the proposed strategy to form three-new firms, GE expects to incur one-time separation, transition, and operational costs of about $2 billion and tax costs of less than $0.5 billion, which will depend on specifics of the transaction.

The company has also announced a management team for the three proposed companies. 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.

Peter Arduini will assume the role of president and CEO of GE Healthcare effective January 1, 2022. Scott Strazik will be the CEO of the combined Renewable Energy, Power, and Digital business while John Slattery continues as CEO of Aviation.

Read the original article on RTTNews ( https://www.rttnews.com/3240781/ge-to-form-3-public-firms-focused-on-aviation-healthcare-and-energy.aspx)

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