(WWLP/AP) – General Electric, the multinational conglomerate that dates back nearly 130 years, is splitting up.
Boston-based G-E announced Tuesday morning they are breaking up into three separate publicly traded companies focused on aviation, healthcare, and energy.
“By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employee Chairman and CEO Lawrence Culp Jr. said in a prepared statement.
According to the Associated Press, CEO Lawrence Culp Jr. will become the non-executive chairman of the healthcare company. Peter Arduini will serve as president and CEO of GE Healthcare effective January 1, 2022. Scott Strazik will become CEO of the combined renewable energy, power, and digital business. Culp will lead the aviation business along with John Slattery, who will remain its CEO.
CNBC reports the decision to split into three companies comes as a result of their stock underperforming for years following the 2007-2008 financial crisis.