GE announced the sale of its energy-focused business Current to New York-based private equity firm American Industrial Partners this week. Current makes energy efficiency and digital productivity products for commercial offices, retail stores, industrial facilities, and cities.
Selling Boston-based Current has been a plan for General Electric since then-CEO John Flannery announced it during a shareholder presentation last year. From January to November, GE shares had dropped 37%. On the call, Flannery also signaled his intention to sell the company’s transportation and industrial solutions divisions. In May, the conglomerate sold its 111-year-old rail business for $11 billion.
“Over the past two years, Current has generated significant growth in delivering new energy efficiency and digital productivity outcomes for its customers,” a GE spokesperson said last fall. “GE’s goal is to find a buyer that can help Current continue progressing on its growth journey.”
Matt Egan wrote for CNN Business this week that GE didn’t disclose the sale price, which analysts say suggests Current fetched an insignificant sum. “LED pricing has come under heavy pressure and Current generated just $900 million of sales during the first nine months of 2018,” he wrote.
The sale to American Industrial Partners (AIP) does not include GE Lighting’s North American consumer lighting business. GE says they remain actively engaged in the process of selling that.
Current’s commercial technology portfolio includes LED and traditional lighting solutions, a variety of connected sensors, controls, and software. The GE business has worked on energy-related projects with companies that include JPMorgan Chase, Morgan Stanley, Home Depot, and Nokia. As of the sale to AIP, a licensing agreement will allow Current to continue using the GE brand.
American Industrial Partners, as the name implies, focuses on buying and growing industrial businesses. AIP has been in private equity investing for three decades and now has more than $4.2 billion of assets under management.
“The firm’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,” said Maryrose Sylvester, the president and CEO of Current. “We look forward to partnering with the AIP team to further establish Current as a leader in the rapidly growing IoT lighting space.”
