GE board approves spinoff of GE Healthcare Technologies
Photo | Courtesy of GE Healthcare
GE Healthcare's facility in Marlborough
The medical technology division of General Electric known as GE Healthcare, which has a facility in Marlborough, will be spun off into its own separate company on Jan. 4.
The new company will be known as GE Healthcare Technologies. The GE board of directors approved the separation of the companies at the end of November, according to a Wednesday press release from GE.
The move is part of a larger effort by the financially troubled GE organization to spin out three of its division into separate companies. The other two are the aviation and renewable energy divisions.
“Today’s announcement marks one of the final milestones for our planned spin-off of GE HealthCare as we move toward launching three independent, industry-leading, and investment-grade companies,” Lawrence Culp, GE chairman and CEO and CEO of the new GE Aerospace company, said in the press release. “GE HealthCare is driving precision care globally, with a clear strategy for value creation that will benefit patients, customers, and shareholders under the leadership of CEO Peter Arduini and his team.”
GE HealthCare is a medical technology, pharmaceutical diagnostics, and digital solutions company that employs approximately 51,000 people. The company has three locations in Massachusetts: Marlborough, Burlington, and Boston. The Marlborough location has around 100 employees, which will remain unchanged following the spin-off.
The newly formed GE Healthcare Technologies is expected to start trading on the Nasdaq on Jan. 4. The original General Electric parent company will retain a 20% ownership stake in the now new company.
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