General Electric (GE) Announces Its New Three Independent Entities

CEO Larry Culp unveils new logos for General Electric’s (GE) historic split. GE will be divided into three independent companies, each company will be considered a leader in its industry. This will also come with a new GE logo. 

According to the Get General Electric Company report, this highly revered company will be going into its first historic split in over 130 years in the business. The company is going to separate GE into three independent public companies.

Larry Culp explains the first separate public company will be GE Aerospace, which is GE’s aviation unit. The CEO will operate this unit himself, along with current CEO John Slattery as the chief commercial officer. GE Aerospace is the primary foundation of the company’s plan to split into three separate entities, which was announced in December of last year.

How Will The Company Integrate the New GE Logo?

This unit will also assume GE’s famous blue and white logo, but with a slight makeover. Instead of the iconic blue-and-white combination, the new GE logo will now be an “atmosphere blue.” The iconic monogram logo dates back to Thomas Edison. However, the new logo is the beginning of the end of something whole transformed into three more powerful laser-focused companies. 

The second unit will be GE Vernova, which will comprise the company’s power and renewables division and energy financial services. Scott Strazik is said to operate this division and has managed a tax-free deal in 2024 into the public markets. 

Finally, the third unit is GE Healthcare, with emerging plans for Nasdaq Global Select Market listings under GEHC in the first half of 2023. 

GE’s greatest milestone

This split will cost approximately $2.5 billion, including all taxes and operational expenses. 

Culp said, “Today marks a key milestone in GE’s plan to become three independent, laser-focused companies.”

He added, “Leveraging GE’s multi-billion-dollar global brand gives us a competitive advantage in our end markets, allowing these businesses to win in the future.”

“Built on a foundation of lean and innovation, these brands will continue our mission of building a world that works and provide our customers with an important reminder of the strengths they value in GE.”

GE’s shares are 1.32 percent higher after the division split, with each unit amassing $63.68. 

Culp also added that the industrial group is noticing considerable customer demand. However, supply-chain hindrances are the group’s most vital challenge. He said that the most significant challenge is delivering products to their customers. 

The CEO also added that the industrial group would entirely focus on cutting costs, targeting $2 billion for 2022 in terms of the gross cost out target. This will be achieved through sourcing actions, restructuring, and productivity. 

This challenge will continue to impair the industrial group until the second half of the year. This will prompt GE to focus more on free cash flow and growth profit. Culp confirmed in March that these challenges have been pressuring the company due to their severity.

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