General Electric outlines plans to spin off health care division

The planned spin-off of GE HealthCare Technologies is part of General Electric’s overall plan to separate into three separate public companies.


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Charles Krupa/Associated Press

General Electric Co. determine the conditions for spinoff of its healthcare divisionplacing an initial valuation of roughly $31 billion on the soon-to-be-public company.

GE

GE 0.36%

said current shareholders will receive one share in the new GE HealthCare Technologies Inc. for every three shares they own in GE. The split is scheduled for Jan. 3 after the market closes, and the new shares will trade on the Nasdaq under the symbol GEHC.

The stock’s distribution ratio does not necessarily determine the value of the spinoff when the stock begins trading. Wall Street analysts’ estimates of the business’s value as a public company vary.

The Boston conglomerate plans to split into three separate public companies by the beginning of 2024. After the separation of health care plans to spun off its aerospace business from its energy and renewable energy units.

GE HealthCare, which makes MRI machines and other medical equipment, has about $18 billion in annual revenue, compared with GE’s $74.2 billion in 2021. GE’s health care unit plans to hold an investor day on 8 December.

GE will distribute at least 80.1% of the shares to the division, with GE retaining the rest. GE CEO Larry Culp will serve as non-executive chairman of the new board, and GE HealthCare CEO Peter Arduini will also serve as a director.

GE shares have fallen about 9% so far this year, compared with a 14.4% drop in the S&P 500.

Based on Wednesday’s closing share price of $85.97, GE has a market capitalization of about $93.6 billion, which would value the healthcare spinoff at about $31.2 billion. The record date for distribution is December 16.

Write to Thomas Gritta at [email protected]

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