GE Whittles Down Lighting Assets -- WSJ
November 07 2018 - 3:02AM
Dow Jones News
By Thomas Gryta and Dana Mattioli
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (November 7, 2018).
General Electric Co. said it agreed to sell its Current lighting
division to private-equity firm American Industrial Partners for an
undisclosed amount, as the conglomerate continues to separate from
a business that is central to its historical roots.
The Current business, which sells LED lighting for commercial
use, had about $1 billion in sales in 2017.
GE is still trying to sell the rest of its consumer-lighting
business, which includes light bulbs, according to people familiar
with the matter. The company sold its overseas lighting business
earlier this year.
American Industrial Partners is a middle-market private-equity
firm. Its current investments include bulk-freight shipping company
Rand Logistics, aviation-services provider Vertex Aerospace and
Gerber Technology, which makes equipment for apparel
manufacturers.
Under the Current deal, which is expected to close in early
2019, the Boston-based business would continue using the GE brand
under a licensing agreement, GE said.
"[AIP's] deep expertise in operations and engineering, combined
with its highly successful track record of industrial business
investments, would help us accelerate Current's growth," Maryrose
Sylvester, president and chief executive of Current, said in a
statement.
GE's sale attracted a number of private-equity firms as well as
foreign buyers, according to people familiar with the matter.
The struggling conglomerate has been trying to sell its lighting
business for years, beginning under former CEO Jeff Immelt. While
the lighting business is iconic for GE -- which was co-founded by
Thomas Edison -- the products have become commoditized and profit
margins are thin.
GE has been evaluating sales and spinoffs as the company looks
to shore up its cash balance. Last week, the company cut its
dividend for the second time in a year. It also revealed that
federal prosecutors had opened a criminal investigation into its
accounting.
In recent years, GE has been selling the last of its consumer
businesses. In 2016, it agreed to sell its appliances business to
China's Haier Group for $5.4 billion. GE gave the Chinese buyer the
right to continue using its brand on stoves, refrigerators and
other appliances for several decades. Thousands of workers and a
sprawling factory complex in Louisville, Ky., were transferred in
the deal.
Write to Thomas Gryta at thomas.gryta@wsj.com and Dana Mattioli
at dana.mattioli@wsj.com
(END) Dow Jones Newswires
November 07, 2018 02:47 ET (07:47 GMT)
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