GE Spins Off Healthcare As Part Of Major Reorganization
GE Healthcare will become a standalone company, distinct from GE, as the conglomerate focuses on its aviation, power, and renewable energy businesses, the company announced June 26. Current GE Healthcare CEO Kieran Murphy will continue to lead the business, which will maintain the GE Healthcare brand. GE plans to monetize 20% and distribute the remaining 80% of GE Healthcare to shareholders tax-free.
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The proposed IPO for GE's healthcare business could be off the table, CEO Lawrence Culp said as GE announced plans to sell its biopharma business to Danaher for $21.4bn. The deal will provide the conglomerate with a much needed cash injection to handle its rising debts.
GE is replacing John Flannery as chairman and CEO with H. Lawrence Culp, formerly the chief of Danaher. But the change in leadership will not alter the company's previously announced plan to spin off GE Healthcare as a stand-alone business and make some other structural changes, the company says.
Second quarter device financing totaled $3.4 billion, less than half of the Q1 aggregate. Conversely, the $10.6 billion in device M&As was a 58% upsurge over the previous quarter. Like the device trends, total Q2 diagnostics financings (at $959 million) showed a 36% decline from Q1, while the $4.8 billion in M&A volume exhibited a significant increase over the previous quarter.