General Electric Co. has filed confidentially for an initial public offering of its GE Healthcare unit, according to a Bloomberg report.
The Chicago-based medical technologies and services General Electric subsidiary announced in June plans to spin off into a standalone company over the next 12 to 18 months.
GE Healthcare has about 6,000 employees in Wisconsin, with significant operations in Waukesha and Wauwatosa and additional locations in Milwaukee, Oak Creek, West Milwaukee and a plant in Madison. It provides medical imaging, monitoring, biomanufacturing and cell therapy technology.
According to the Bloomberg report, GE Healthcare is working with Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley on the planned listing.
GE Healthcare released the following statement Wednesday: “As we announced in June, GE intends to separate its Healthcare business, but we have not confirmed the form or timing. As an independent global healthcare business, GE healthcare will have greater flexibility to pursue future growth opportunities, react quickly to changes in the industry and invest in innovation.”
GE Healthcare recorded more than $19 billion in revenues in 2017, posting 5 percent revenue growth and 9 percent segment profit growth in the same year. A newly public GE Healthcare could have an enterprise value, including debt, of $65 billion to $70 billion, according to Bloomberg.
Under the spin-off plan unveiled in June, GE said it would monetize 20 percent of its interest in the health care business and distribute the remaining 80 percent to GE shareholders. The company did not say what the impact, if any, would be on Milwaukee area GE Healthcare employees.
It’s among a series of changes GE has made over the past year as it has shifted its focus to aviation, power and renewable energy.