People visit the General Electric stand during the China International Import Expo (CIIE) at the National Exhibition and Convention Center on November 7, 2018 in Shanghai, China.
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GE HealthCare will encompass the company’s health-services branch and will be listed on the Nasdaq Stock Market under the symbol “GEHC,” the company said in a release. That spinoff is expected to be completed early next year.
GE Aerospace will encompass the company’s aviation branch, which includes a fleet of 39,400 commercial and 26,200 military aircraft. The aerospace offshoot will also own the GE trademark, which it can license out to the other divisions.
The company’s renewable energy businesses will fall under the name GE Vernova — a title the company said is “a combination of ‘ver,’ derived from ‘verde’ and ‘verdant’ to signal the greens and blues of the Earth, and nova,’ from the Latin ‘novus,’ or ‘new,’ reflecting a new and innovative era of lower carbon energy that GE Vernova will help deliver.”
GE maintains an installed base of 7,000 gas turbines and 400 gigawatts of renewable energy equipment. The spinoff of that business is expected to be completed in early 2024.
“Today marks a key milestone in GE’s plan to become three independent, laser-focused companies,” Chair and CEO Larry Culp said in a statement. “Leveraging GE’s multibillion-dollar global brand gives us a competitive advantage in our end markets, allowing these businesses to win in the future.”
Shares of GE gained more than 1% Monday. The stock is down roughly 30% year to date.