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General Electric to split into 3 public companies

General Electric, GE
Posted at 9:42 AM, Nov 09, 2021

CINCINNATI — General Electric is splitting itself into three public companies that concentrate on aviation, healthcare and energy.

The company said Tuesday that it plans a spinoff of its healthcare business in early 2023 and of its energy segment in early 2024. GE has not announced what, if any, impacts would come to its Aviation headquarters located in Cincinnati and its 9,000 estimated employees.

"Some speculation is it could be helpful to Ohio," said Governor Mike DeWine. "So, you know, this is a home of GE and has been for many years so we're hopeful and we're poised to do whatever we need to do to bring more jobs here to Ohio."

GE anticipates keeping a 19.9% stake in the healthcare unit.

The company expects one-time separation, transition, and operational costs of approximately $2 billion related to the actions.

"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 Chairman and CEO H. Lawrence Culp, Jr. said in a press release. "We are putting our technology expertise, leadership, and global reach to work to better serve our customers.”

GE said in a press release the reason for the spinoff was to reduce risk and debt, become more nimble in each division that they are spinning off, and to continue the momentum of their strong business and operating performance.