Much like when Boston-based General Electric Company (GE) sold its GE Appliances business to Haier Group in 2016 and allowed Haier to sell appliances under the GE brand, GE has recently signed a proposed agreement to sell its Current, powered by GE business to American Industrial Partners (AIP), a New York-based private equity firm, consenting to let Current continue using the GE brand under a licensing agreement. The proposed transaction is subject to the customary closing conditions, regulatory approvals, and consultation processes. Financial details were not disclosed.
“American Industrial Partners would be a great home for Current moving forward. 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,” says Maryrose Sylvester, President & 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.”
“GE’s history of innovation, quality, reliability, and deep domain expertise is an ideal fit with our investment strategy,” adds Eric Baroyan, a Partner of AIP. “We look forward to continuing that legacy by supporting Current’s management team on the key growth initiatives, building upon Current’s extensive product portfolio and leading digital solutions that are helping customers gain energy savings and greater insights into their environment through a sophisticated intelligent ecosystem platform. We are thrilled to partner with Maryrose Sylvester and the leadership team to invest in Current’s industry renowned engineering, manufacturing, digital and supply chain capabilities to capture the significant opportunity of energy efficiency and digitalization ahead of us.”
UBS Investment Bank acted as lead financial advisor, and Sidley Austin LLP acted as lead legal advisor to GE. Greentech Capital Advisors and Wells Fargo Securities, LLC also advised GE. Barclays plc acted as financial advisor to AIP. Ropes & Gray LLP and McGuireWoods LLP acted as legal advisors to AIP.
The North American consumer lighting business of GE Lighting is not included as part of the proposed transaction. GE remains actively engaged in the process to sell this business.