News reports that offers for GE’s Appliances’ group weren’t high enough and that the company is now looking at spinning off GE’s appliances, lighting and industrial groups could create interesting opportunities for a new entity, presuming it has the financial ability to expand.
While it is interesting that none of the discussed acquirers, and others, have (or had if they don’t get re-involved) the vision to see how these three entities could help someone enter into the U.S. marketplace (see our other post re: GE), a spin-off could become a formidable competitor.
Consider …
- Could GE Lighting (lamp side) acquire Acuity (Lithonia) and then merge GE Lighting Systems into Acuity? ( or this could make OSRAM Sylvania want to acquire Acuity?) Then they (the “new GE” or Sylvania) could compete effectively in the future vs. Philips. Could GE look to acquire a lighting controls company? More fully develop / promote a ballast line? into Acuity? Then they could compete differently vs. Philips (or could this make
- Where could GE Consumer and Industrial go? What is needed to better compete against Eaton and Square D? Does GE get back into wiring devices to begin to offer end-to-end solutions? Acquire a building automation company? Become more involved in serving the industrial market (maybe even long-term create a “relationship” with Rockwell?
- And we’re confident that people who 1) know these products better could add on more companies and 2) individuals familiar with the appliance industry/market could add other companies.
This could be an interesting opportunity to create 3 growth platforms. While initially it could be a spin-off to one company, perhaps it could then become 3 companies (and the sum of the parts may be greater than the whole)!
What are your thoughts? What other products/companies would be good to integrate under a “spin-off” umbrella? How do you think a spun-off lamp/lighting and industrial/consumer business would affect you? What will they change that will impact your business?
5 Comments
How do you see the future of GE in lighting segment? Both Osram and Philips has LED wings, but GE partner with Nichia. I don’t think Lumination has competitive advantage!
While GE hasn’t shown much to date, they have an effort going on. Recently we heard of a webinar they are holding on the subject … next week.
GE LEDs and innovative technology… Winning in this arena is critical for GE and our distributor’s growth and success. It requires bold innovation, both in technology and commercial excellence.
This moderated chat will focus on:
· LED 101-LED Industry Basics
· What’s hot.. what’s not…all LED’s are not Created Equal
· GE LED product line overview and success-We ARE in the game!
· GE White Light Platforms
· What is selling in LED? Where is the market? Where is value proposition winning?
· What does GE have for me to sell now?
· What is the development pipeline?
Would have also been interesting if they had been able to acquire Cree. Without GE Corp backing, financing isn’t probably there for such a deal, but perhaps a licensing or distribution agreement? GE has the distribution network. Cree’s LFF division is getting rave reviews.
and the sum of the parts may be greater than the hole
think it should be “whole” vs “hole”
a “hole” is something the CEO of GE has stuck his head into looking at the stock price
Whole is the sum of money Jack Welch left with.
The Whole Enchilada
The ‘guess’ around here is that GE appl.,industrial abd the whole bunch will be sold off.
We are looking for different lines. We have to have something to sell to our customers.
We have to keep on truckin.
The guys who want to sell product.
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