General Electric (NYSE:GE) announced that it has completed the separation of its healthcare business, launching GE HealthCare Technologies Inc as part of a strategy announced in 2021 to break up into three companies so it can focus on its aviation business.
Starting today, January 4, 2023, the company said GE HealthCare, a global leader in Precision Care, will trade on Nasdaq under the ticker symbol ‘GEHC’. The company has also been included in the S&P 500, replacing Vornado Realty Trust, which moves to the S&P MidCap 400.
“The successful spin-off of GE HealthCare marks a pivotal moment in our transformation into three independent companies focused on critical, growing sectors,” GE chairman and CEO Larry Culp said in a statement. “I am tremendously proud of the GE and GE HealthCare teams for their work to prepare this great business to stand on its own as an industry-leading, investment-grade company focused on Precision Care.”
The company noted that holders of its common stock received one share of GE HealthCare common stock for every three shares of GE common stock held. The distribution was part of a tax-free spin-off, resulting in tax efficiency for GE shareholders in the US.
Starting a new chapter
“Today is an incredibly exciting day for GE HealthCare as we become an independent company and start a new chapter advancing our position as a global leader in precision care,” GE HealthCare president and CEO Peter Arduini said. “We are on the verge of true industry transformation as digital innovation reshapes the experience of patients and providers with an increased need for more precise, connected, and efficient care."
GE HealthCare said it launches with a presence in more than 160 countries and approximately 51,000 employees worldwide serving more than one billion patients a year. The company invests more than $1 billion in research and development annually and generates approximately $18 billion in revenue, with an installed base including more than 4 million pieces of equipment across its four business segments – Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics.
Unleashing potential
Culp said the company is “on track and confident” in its plans to unleash the potential of GE Aerospace and GE Vernova, its portfolio of energy businesses, as separate companies in early 2024.
“These two global leaders are creating a smarter, more efficient future of flight and driving decarbonization to address the energy transition,” he added. “With lean and innovation at our core, we could not be more excited about the future.”
GE said it is retaining approximately 19.9% of the shares of GE HealthCare common stock. Culp will serve as non-executive chairman of GE HealthCare.
Contact the author at stephen.gunnion@proactiveinvestors.com