The opposite of inversion: GE Healthcare moves global headquarters from UK to Chicago
Other companies have been relocating overseas for the tax savings in inversion deals discouraged by the U.S. Treasury Department.
In a move that appears to go against the corporate trend, GE Healthcare has announced it is moving its global headquarters from the United Kingdom to Chicago effective early 2016.
The shift will enable executive leadership to be closer to operations in Chicago and Milwaukee, while remaining near an international transportation hub, GE Healthcare said.
Its headquarters were previously in Amersham, UK, where GE Healthcare is keeping its global Life Sciences head office and a base for UK operations, it said.
"We are excited to strengthen GE's roots in Chicago, where we will continue our focus on being the leading provider of outcome-based solutions for the healthcare industry," CEO and President John Flannery said in a statement. "Chicago has a rich industrial heritage, terrific international transportation links and is close to some of the world's leading healthcare and academic institutions. It is also ideally located for many of GE Healthcare's operations."
[Also: Pfizer, Allergan announce $160 billion merger, 'inversion' deal would shift HQ overseas]
City officials have not offered any tax incentives to help finance the move, according to the Chicago Tribune. Other companies have cited tax savings as the reason for moving overseas in moves called "inversions."
In November, pharmaceutical giant Pfizer said it would merge with Botox maker Allergan in a $160 billion deal that would shift the company's executive offices to Ireland, in a tax-saving inversion sure to get heavy regulatory scrutiny.
The U.S. Treasury Department has proposed new measures to discourage tax inversion deals.
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GE Healthcare, a subsidiary of General Electric, plans to move into office space already leased by GE Transportation in the 500 West Monroe building in Chicago in the first half of this year, the Chicago Tribune said.
While more than half of GE Healthcare's business is overseas, the U.S. is its largest market for digital imaging, information technology and life sciences business, the published report said.
Rahm Emanuel, mayor of the City of Chicago, said in a statement: "GE Healthcare's decision to relocate its global headquarters here is another example of Chicago's growing strength in healthcare and innovation, and another vote of confidence in Chicago's economic future."
Illinois Governor Bruce Rauner said: "The relocation of GE Healthcare's global headquarters to Chicago is a tremendous win for the state of Illinois. GE Healthcare will help grow the economy in Illinois by investing in our communities and building Chicago's reputation as a global business hub."
GE Healthcare is an $18 billion subsidiary unit of General Electric, which also announced a corporate move, within the U.S.
GE's new home will be the Seaport District in Boston.
"Today, GE is a $130 billion high-tech global industrial company, one that is leading the digital transformation of industry," said Chairman and CEO Jeff Immelt. "We want to be at the center of an ecosystem that shares our aspirations. Greater Boston is home to 55 colleges and universities. Massachusetts spends more on research and development than any other region in the world, and Boston attracts a diverse, technologically-fluent workforce focused on solving challenges for the world."
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GE considered 40 potential locations, before selecting Boston based on its business ecosystem, talent, long-term costs, quality of life for employees, connections with the world and proximity to other important company assets, it said.
Massachusetts and the City of Boston structured a package of incentives that provides benefits to the state and city, while also helping offset the costs of the relocation, the company said. GE is selling its offices in Fairfield, Conn. and in Rockefeller Plaza in New York City to help finance the move.
The company will have a temporary location in Boston by the summer of 2016, with a full move completed in several steps by 2018, it said.
Twitter: @SusanJMorse
