GE's board of directors has approved the spinoff of its healthcare business to a separate entity, GE HealthCare.
GE’s board of directors approved the healthcare spinoff, which was previously announced in July, and the new company is expected to trade on the Nasdaq under the moniker “GEHC” starting Jan. 4, 2023. The plan was part of a larger strategy by GE to spin off three, independent companies––GE HealthCare, GE Vernova and GE Aerospace.
GE’s board approved a distribution to GE shareholders of at least 80.1% of the outstanding shares of GE HealthCare, according to a press release. GE common stockholders will be entitled to one share of GE HealthCare for every three shares of GE held on Dec. 16, 2022. That distribution is expected to occur after U.S. market close on Jan. 3, 2023.
GE will retain 19.9% of the outstanding shares of GE HealthCare.
“Today’s announcement marks one of the final milestones for our planned spin-off of GE HealthCare as we move toward launching three independent, industry-leading, and investment-grade companies,” GE Chairman and CEO, GE Aerospace CEO, H. Lawrence Culp, Jr., said in a statement. “GE Healthcare is driving precision care globally, with a clear strategy for value creation that will benefit patients, customers and shareholders under the leadership of CEO Peter Arduini and his team.”
GE HealthCare is a medical technology, pharmaceutical diagnostics and digital solutions innovator. The company will be organized into four business segments: Imaging, ultrasound, patient care solutions and pharmaceutical diagnostics. According to GE, the spinoff aims to drive innovation, accelerate growth and optimize its operating model.
GE’s healthcare segment has 51,000 employees and reported $17.59 billion in revenue last year. The company announced its board of directors for GE HealthCare in September, which included several GE leaders.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."