The breakup of General Electric who pioneered lighting industry still continues. The company announced this Tuesday that it is going to sell their commercial LED producer Current to a private equity company named American Industrial Partners. This one was the latest business of GE which is going to be sold out as the company wants to pay its debts by raising funds and cutting down costs. The balance of GE has forced it to slash their dividend to a penny during last week. The sale price of Current has not yet disclosed by GE.
The prices of LED have been seeing heavy pressure while Current has generated only $900million in sales during its first 9 months of the year 2018. Also, along with LED technology, the Current produces software, controls, and sensors for the customers like JP Morgan and Walmart. As the part of proposed sales, the company will make use of the iconic brand of GE under a licensing agreement. The new home for Current will be AIP, which is a New-York’s private firm focusing on improved industrial companies. This firm has a great expertise in engineering and operations, with an outstanding track record in doing business investments, which would help GE accelerate the growth of Current, says Maryrose Sylvester, CEO of Current said in her statement.
General Electric is still looking out for a new buyer who can buy its consumer light bulb’s business, which is not a part of Current. Previously, GE has planned to sell this lighting unit during mid-2017. The company is seen always engaged in selling this business, said Current. General Electric has two main financial problems: their debts are too high as well as their earnings are reducing slowly. This has forced such a large conglomerate to break itself in order to raise $20billion during a bid.