General Electric to spin out GE Healthcare

General Electric (NYSE:GE) said today that it plans to spin out its GE Healthcare subsidiary as a stand-alone, publicly traded entity to focus on its aviation, power and renewable energy businesses. The Boston-based industrial conglomerate also said it’s planning an “orderly separation” from its 62.5% stake in BHGE oil and gas servicing and equipment unit over the next two to three years. Little Chalfont, U.K.-based GE Healthcare has long been a bright spot for its parent, consistently posting sales and profit gains despite overall declines at GE. In April division agreed to sell its value-based healthcare division to Veritas Capital for $1.05 billion in cash; that deal is expected to close during the third quarter. Today General Electric CEO John Flannery – formerly head of the healthcare unit – said GE Healthcare chief Kieran Murphy will stay on to the lead the $19 billion company after its emancipation. “GE Healthcare’s vision is to drive more individualized, precise and effective patient outcomes. As an independent global healthcare business, we will have greater flexibility to pursue future growth opportunities, react quickly to changes in the industry and invest in innovation. We will build on strong customer demand for integrated precision health solutions and great technology with digital and analytics capabilities as we enter our next chapter,” Murphy said in prepared remarks. “GE Healthcare is an industry leader...
Source: Mass Device - Category: Medical Devices Authors: Tags: Hospital Care Imaging Wall Street Beat GE Healthcare General Electric Source Type: news