HP announces its separation into two new publicly traded Fortune 50 companies. One comprising its market-leading enterprise technology infrastructure, software and services businesses will operate as Hewlett-Packard Enterprise and the other one that will comprise HP’s market-leading personal systems and printing businesses will operate as HP Inc and retain the current logo.
The announcement comes as HP approaches the fourth year of its five-year turnaround plan. Over this time, the company has executed successfully against its turnaround objectives, keeping customers and partners at the forefront. The decision to separate HP into two market-leading companies underscores the company’s commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders. Both companies will be well capitalized and expect to have investment grade credit ratings and capital structures optimized to reflect their distinct growth opportunities and cash flow profiles. The separation into independent publicly traded companies will provide each company with its own, more focused equity currency, and investors with the opportunity to invest in two companies with compelling and unique financial profiles well suited to their respective businesses.
