The part sale of GE’s lighting business, which can be traced back to Thomas Edison who co-founded the company more than a century ago, is just the first of many steps to shred-off its non-core assets and focus on just its three core areas.
General Electric has agreed to sell parts of its overseas lighting business for an undisclosed sum to a company that is controlled by its former executive, Joerg Bauer.
As per GE, Bauer had most recently served as the firm’s President of GE Hungary.
GE Lighting’s Europe, Turkey, Middle East and Africa business is headquartered in Hungary.
The deal marks the firm’s first step in the divestiture of its lighting business, which includes GE Lighting in Europe, Turkey, the Middle East and Africa along with its Global Automotive Lighting businesses.
The remaining parts of GE Lighting, as well as the Current, will now be marketed as part of a separate sale or sales, the company also added.
Incidentally, the lighting business dates back to GE’s roots, more than a century ago when it was co-founded by Thomas Edison.
The divestiture is part of GE’s grand restructuring plan to sell all of its non-core assets worth $20 billion and focus on just its three core divisions: health care, power, and aviation.
GE’s lighting business saw a sharp fall in profits in 2017, where it earned $93 million on revenue of around $2 billion in 2017, down from $199 million on $4.8 billion in 2016.