General Electric (“GE”) consists of multiple U.S. industrial businesses serving critical global infrastructure end markets.
In October 2015, Trian announced its investment in GE. In October 2017, Trian’s Chief Investment Officer and a Founding Partner, Ed Garden, was elected to the GE board of directors.
In June 2018, GE announced the results of a strategic review, in which GE will focus on Aviation, Power and Renewable Energy, creating a simpler, stronger, leading high-tech Industrial company. In addition to the pending combination of its Transportation business with Wabtec, GE plans to separate GE Healthcare into a standalone company, pursue an orderly separation from BHGE (Baker Hughes, a GE company) over the next two to three years, make its corporate structure leaner, substantially reduce debt and improve liquidity. The actions unlock both a pure-play healthcare company and a tier-one oil and gas servicing and equipment manufacturer. GE also announced that the Board’s independent directors have completed the previously announced lead director transition, electing Larry Culp, former CEO of Danaher, to succeed Jack Brennan, who is completing his last term on the GE Board. Trian supports these strategic initiatives and believes that these initiatives will create substantial value for shareholders.
Trian expects to continue working closely and constructively with CEO and Chairman John Flannery and his leadership team, together with the GE board as the company executes its strategic initiatives.