Health IT, Devices & Diagnostics, Diagnostics

Report: GE Healthcare files confidentially for IPO

Earlier this year, the company announced an initiative to spin off its healthcare and Baker Hughes energy divisions as part of an effort to reduce its debt load.

General Electric Co. has filed for an initial public offering of its healthcare division as part of its effort to spin off the Chicago, Illinois-based GE Healthcare, according to a story from Bloomberg.

GE Healthcare is led by CEO Kieran Murphy and focuses on medical imaging services, remote monitoring, biomaufactering and data analytics. A public filing is expected next spring, according to the Bloomberg report, which estimated the enterprise value of the spinoff at $65 billion to $70 billion.

GE has planned to move away from its healthcare business line to refocus on its activities in industrial manufacturing. Earlier this year, the company announced an initiative to spin off its healthcare and Baker Hughes energy divisions as part of an effort to reduce its debt load.

In April, the Value-Based Care Division of GE Healthcare was sold to private equity firm Veritas Capital for $1.05 billion.

“As an independent global healthcare business, we will have greater flexibility to pursue future growth opportunities, react quickly to changes in the industry and invest in innovation,” Murphy said in a statement earlier this year. “We will build on strong customer demand for integrated precision health solutions and great technology with digital and analytics capabilities as we enter our next chapter.”

Newly minted CEO H. Lawrence Culp Jr. further detailed the plans for a spin-off in an October earnings call. While his predecessor John Flannery planned to sell off a 20 percent stake in GE Healthcare and offer the rest to the public markets, Culp has implied that he may sell a much larger stake as part of a stronger debt reduction plan.

“We’re still of the view that healthcare operating in an independent form is probably what is best for that business and that team,” Culp said on the call.

Picture: Getty Images, ThomasVogel