General Electric founded in 1892 will split into three public companies focused on aviation, healthcare and power.
In an effort to simplify its business, pare down debt, and breathe life into a battered share price, GE will split into healthcare, aviation, and energy companies. The split marks the end of the 129-year-old conglomerate that was once the most valuable U.S. corporation and a global symbol of American business power.
“This is the best way to fully realize the potential of these businesses,” Mr. Culp said in an interview.
Customers will gain from the splits, as independent boards with industry-specific expertise will focus more on individual businesses, helping customers and increasing the investor base. The GE board began to consider the plan in the spring, Mr. Culp said, as efforts to cut GE’s debt and improve operations had progressed enough to consider such a move. “We looked at this and other options,” he said. “It was clear this is the right path for GE.”