Industrial conglomerate, General Electric has announced plans to split into three separate companies. This was disclosed by the company’s CEO Larry Culp in a press release.
The industry giant said that it will break up into three companies focused on aviation, health care and energy. The aviation unit will keep the GE name after spinning off the health-care unit in early 2023 and the energy unit in early 2024.
Culp expressed further that by creating three industries, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors and employees.
Some investors and Wall Street analysts have been pushing for years for the company to break up as the stock has underperformed against the market over the last two decades.
Since Culp took over GE in 2018, he has sold off assets and restructured the business in order to cut costs and lower GE’s massive debt pile. In 2016 it sold its appliance business to Chinese household goods manufacturer Haier for $5.4 billion. It also shed the iconic light bulb unit in 2020.
