General Electric to break up into 3 independent companies
A General Electric employee between wind turbine nacelles during the construction of a wind farm near Saint-Nazaire, France, in September. Photo: Sebastien Salom-Gomis/AFP via Getty Images
General Electric announced Tuesday it will break itself into three independent companies focused on aviation, health care and energy.
Why it matters: The planned split of the once industrial powerhouse comes after years of seeing its stock underperform and the buildup of high levels of debt.
What they're saying: "The world demands — and deserves — we bring our best to solve the biggest challenges in flight, health care and energy," GE CEO Lawrence 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," he added.
The big picture: It hopes to spin off GE Healthcare in early 2023 and combine GE Renewable Energy, GE Power and GE Digital into one business in early 2024.
- GE itself will continue on as an aviation-focused company led by Culp.
Go deeper: Meet General Electric's flexible power transformer