General Electric to Split Into Three Public Companies

General Electric Co. GE +6.08% said it would split into three public companies, breaking apart the more than century-old company that was once a symbol of American manufacturing might and has struggled in recent years.

The plan is being unveiled three years after Larry Culp took over the troubled company and tried to stabilize its operations by selling off business units and paying down the company’s debt load. But GE’s stock price, despite a 1-for-8 reverse split, has lagged behind the S&P 500 and rivals.

GE shares have lagged behind rivals and the​S&P 500 since Larry Culp was named CEOCumulative change since Oct. 1, 2018Source: FactSetAs of Nov. 5

S&P 500 indexSiemensHoneywellGeneral Electric2019'20'21-50-2502550%

The move is the culmination of a yearslong process of shrinking the company. GE has already sold off its locomotive and home appliances business. It spun off its oil-and-gas business operations. It has also sold most of its once massive financial services arm, which hobbled the company after the 2008 financial crisis. It also slashed its quarterly dividend to a token penny per share.

What remains today are three businesses—aviation, healthcare and power. The company will now spin them off into separate publicly traded companies.