MKE Business Journal: Top exec says GE Healthcare spinoff will enable ‘future growth possibilities’

MKE Business Journal: Top exec says GE Healthcare spinoff will enable ‘future growth possibilities’

GE Healthcare, which parent company General Electric weighed for a spinoff in 2019, is set to finally become an independent company in early 2023, which health care president and CEO Kieran Murphy said will enable “more freedom to invest in innovation” and “the ability to pursue future growth opportunities.”

The impact of the change will be felt at GE Healthcare’s business in Wisconsin, which is in medical systems including X-ray, magnetic resonance imaging (MRI) and CT scanners. The company has about 6,000 employees in Milwaukee and Waukesha counties and a plant in Madison.

Chicago-based GE Healthcare said it will become “a pure-play company at the center of precision health.” General Electric, which has headquarters in Boston, expects to retain a stake of 19.9%.

GE (NYSE: GE) said it will combine its renewable energy, power and digital units into one business that GE plans to spin off. After spinning off the health care and energy businesses, GE said it will be an aviation-focused company.

“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 employees,” said GE chairman and CEO Larry Culp.

Murphy, in a post Tuesday on LinkedIn, said the spinoff will give GE Healthcare the flexibility to react quickly to changes in the health care industry “so we can become even stronger and more focused at tackling some of health care’s biggest challenges.”

“This move will enhance our ability to deliver on our vision of making healthcare more integrated, efficient, and highly personalized,” Murphy said.

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