GE To Focus on Aviation after Spinning Off Other Units

 - November 9, 2021, 9:32 AM

GE announced plans today to spin off its healthcare and energy businesses as separate public companies by early 2024, leaving an “aviation-focused company shaping the future of flight.” The conglomerate expects to spin off GE Healthcare in early 2023 but will retain a 19.9 percent stake; divestiture of GE’s energy segment will occur a year later.

Company chairman and CEO H. Lawrence Culp Jr. will continue to serve as chairman and CEO of GE until the second spin-off, at which point he will then lead the GE aviation-focused company going forward. John Slattery will remain as CEO of GE Aviation.

Meanwhile, GE is on track to reduce its debt by more than $75 billion by year-end, in part due to the company’s sale of its GECAS aircraft-leasing business to Ireland’s AerCap Holdings last month for some $30 billion. “As a result, GE is in a strong position to execute this plan to form three well-capitalized, investment-grade companies. The company and its businesses will continue to serve GE’s partners and customers throughout this transition,” GE noted.

GE Aviation has an installed base of 37,700 commercial engines and 26,500 military engines. In the business and general aviation space, the division currently offers the CF34, Passport, and—in partnership with Honda—HF120 turbofans, as well as the H-series turboprop. The company is also developing its Catalyst turboprop engine that will power the Beechcraft Denali.