GE completes healthcare division spinoff

GE completes healthcare division spinoff unknown

GE announced on Wednesday it had completed the spinoff of its healthcare unit.

GE HealthCare began trading on Nasdaq as an independent company under the ticker symbol GEHC. The spinoff, which was first announced in 2021, is part of a larger effort to divide the 130-year-old industrial giant into three separate companies. It plans to complete the separation of GE Aerospace and GE Vernova, focused on its energy businesses, next year.

GE is retaining nearly 20% of the shares of GE HealthCare's common stock. H. Lawrence Culp Jr., chairman and CEO of GE and CEO of GE Aerospace, will serve as non-executive chairman of the separate healthcare company.

"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," said Peter Arduini, president and CEO of GE HealthCare, said in a statement. "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 colleagues worldwide are united in our purpose to create a world where healthcare has no limits, and we look forward to delivering for providers, patients and shareholders in the years ahead."

THE LARGER TREND

The industrial giant had previously announced plans to spin off its healthcare division in 2018, but re-evaluated after it sold off its biopharma business.

The newly independent healthcare company is divided into four segments: imaging, ultrasound, patient care solutions and pharmaceutical diagnostics.

It touts a "precision care" strategy, where it will use data from imaging, lab, pathology, genomics and other sources in its Edison Digital Health Platform and other apps. GE said the strategy will deliver insights that could help providers diagnose disease and determine treatment plans.