GE Founded by Edison Sells Off Light Bulb Manufacturing Business... "Brand Remains"

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunjin Jeong] General Electric (GE) of the United States has decided to discontinue its light bulb manufacturing business, which it has been engaged in for 129 years since the era of the inventor Thomas Edison. GE was established in 1892 through the merger of Edison General Electric and its competitor Thomson-Houston Electric, and has maintained its related business for over a century.

According to the Wall Street Journal (WSJ) and others on the 27th (local time), GE plans to sell its light bulb manufacturing division to the smart home company Savant Systems. Although specific sale terms have not been disclosed, WSJ cited sources saying the deal is expected to be worth around $250 million. The sale process is expected to be completed within this year.

The light bulb manufacturing business was one of the core businesses representing GE. It began selling the incandescent light bulb first invented by Edison over 130 years ago, and also developed fluorescent lamps, halogen lamps, and produced LED lamps in 1962.

Accordingly, despite the sale of the light bulb manufacturing business, consumers are expected to continue encountering GE-branded light bulbs. The acquiring party, Savant Systems, has agreed to continue using the GE brand and to keep the light bulb division’s headquarters in its current location in Cleveland, Ohio.

GE has recently faced management difficulties while expanding various businesses. For several years, it has been pursuing the sale of the unprofitable light bulb manufacturing division. Larry Culp, GE’s CEO, emphasized that this is "another important step in strengthening the focus on business divisions." GE is currently focusing on four sectors: aviation, healthcare, power generation, and renewable energy.

Founded in 2005 and based in Massachusetts, Savant Systems produces products related to lighting, security, climate, entertainment, and smart speakers. Savant stated that it does not plan to reduce the 700 employees of GE’s light bulb division.