General Electric (GE) has revealed plans to spin off its healthcare business into a standalone entity as part of its strategic restructuring to substantially mitigate debt.

GE intends to monetise around 20% of its interest in GE Healthcare and will carry out a tax-free distribution of the remaining 80% to its shareholders.

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The transition is expected to take around 12-18 months and the healthcare unit will continue its usual operations throughout the process.

GE chairman and CEO John Flannery said: “GE Healthcare is an industry leader with financial strength, global scale and cutting-edge technology.

“Our talented healthcare team will continue delivering precision health solutions, building on our heritage of technology innovation that delivers patient outcomes.”

GE Healthcare uses deep digital, artificial intelligence and data analytics capabilities to deliver biomanufacturing and cell therapy technology along with imaging and monitoring across 140 countries.

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“Our talented healthcare team will continue delivering precision health solutions, building on our heritage of technology innovation that delivers patient outcomes.”

In 2017, the division generated more than $19bn in revenues. After the spin out, GE Healthcare president and CEO Kieran Murphy will continue to lead the business.

Murphy said: “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.

“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.”

GE’s strategic review, which also includes various other separations and divestitures, is aimed at allowing the company to focus on three of its complementary businesses: Aviation, Power and Renewable Energy.