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GE to sell energy efficiency business as it cuts debt

Business Finance

AFP  |  New York 

Slumping US industrial giant General Electric announced Tuesday plans to sell its energy efficiency business Current for an undisclosed sum as it works to reduce debt.

During an earnings conference call last week, GE's new Chief Executive Lawrence Culp highlighted debt reduction as a priority and confirmed the company will go ahead with a plan announced in June to shed its oil services and health business units.

Private equity firm American Industrial Partners will purchase Current, which sells energy efficiency technology to commercial, industrial and municipal customers in a transaction expected to close in 2019, the companies said.

The business sells infrastructure technology such as LED and solar, along with digital applications.

GE has been reporting the business as part of its Consumer Lighting segment, which brought in USD 385 million in revenues in the quarter ending September 30, which accounted for only about 1.4 per cent of overall industrial revenues.

GE, the once-dominant industrial giant, has been under pressure since announcing a USD 22.8 billion quarterly loss on October 30, due to a large downgrade of assets. That has sparked US government investigations of GE accounting.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, November 06 2018. 22:40 IST