New Delhi: General Electric Co on Tuesday said it plans to spin off its healthcare business into a standalone company and separate its oil services company Baker Hughes, as it looks to streamline operations and focus on aviation, power and renewable energy units.
“GE will focus on Aviation, Power and Renewable Energy, creating a simpler, stronger, leading high-tech Industrial company,” a company statement said.
The company plans to fully separate its 62.5 percent interest in BHGE, which it bought in July 2017, in an orderly manner over the next two to three years, it said.
The news comes just a day after GE agreed to sell its distributed power unit for $3.25 billion to US buyout group Advent International.
John Flannery, chairman and CEO of GE, said, “Today marks an important milestone in GE’s history. We are aggressively driving forward as an aviation, power and renewable energy company—three highly complementary businesses poised for future growth. We will continue to improve our operations and balance sheet as we make GE simpler and stronger.”
GE`s healthcare unit makes diagnostic imaging systems such as X-ray and magnetic resonance and clinical systems, including ultrasound. GE Healthcare recorded over $19 billion in revenues in 2017 and posted five percent revenue growth and nine percent segment profit growth in the same year.
GE`s oil and gas unit reported sales of $17.23 billion in 2017. The company said it plans to reduce its industrial net debt by about $25 billion by 2020 and maintain more than $15 billion of cash on its balance sheet.