General Electric confirmed that it planned to sell or spin its appliance business. The company said in a statement that the move was part of a plan to exit “slower growth and more volatile businesses.” The company is planning a strategic review that could result in an outright sale of GE Appliances, a strategic partnership, or a spin-off to shareholders.
“This review is consistent with the strategy we have been executing to transform our portfolio for long-term growth, “ GE Chairman and CEO Jeff Immelt said. “Since 2003 we have exited slower growth and more volatile businesses, generating $52 billion in gross proceeds from dispositions. These proceeds have been reinvested into a transformed portfolio of faster growth, higher margin businesses, stock buybacks and other restructuring activities.
“GE Appliances has a very strong brand, great distribution, a talented leadership team and for more than 100 years, has been one of the icons associated with GE in the United States,” Immelt said. “However, its remains primarily a U.S. business, meaning its fortunes are tied to the rise and fall of a single market. We want to make this good business great again by finding the right strategic solution – a solution that will give Appliances the global reach and investment required to compete more effectively,” Immelt said.
to Daily News