Larry Culp brings more than a decade of remarkable success as the CEO of Danaher to his new role at General Electric, giving investors new hope for the embattled industrial conglomerate.
Danaher now holds its place as one of the world's largest science and technology conglomerates, after Culp more than quintupled the company's market value and revenues while CEO.
"Investors will view the change favorably given Culp's successful CEO tenure at Danaher, his GE 'outsider' status, and the fact that Culp doesn't 'need' the position, having already completed a lucrative & reputable career," Cowen analyst Gautam Khanna said in a note.
He comes to GE at a desperate time. Ousted CEO John Flannery was promising shareholders he would trim GE down to three core businesses, but the company was not turning around as quickly as its board of directors had hoped. GE's announcement Monday that Culp will replace Flannery was a surprise move. Shares of GE closed Monday trading 7.1 percent higher at $12.09 a share, after jumping as high as $13.07 a share.