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. Trian supports these strategic initiatives and believes that these initiatives will create substantial value for shareholders.
On October 1, 2018, GE announced a performance update and leadership change. Larry Culp, Jr., former CEO of Danaher Corporation, was named Chairman and CEO of the Company, effective immediately. Additionally, the GE Board appointed Thomas W. Horton as Lead Director. Mr. Culp and Mr. Horton have been members of the Board since April 2018. Trian expects to continue working closely and constructively with Larry Culp in his new role and the rest of the GE board and leadership team as the company executes its strategic initiatives.