As first reported on The Wall Street Journal, sources are saying that General Electric (GE) has hired Goldman Sachs Group to sell its Appliances business. The business, which is headquartered here in Louisville, KY, is part of GE's Consumer and Industrial division which accounted for roughly 10% of GE's revenues in 2007. Sales and revenue have fallen as a result of the downturn in the real estate market.
CEO Jeff Immelt, has pushed a growth platform since assuming the company's reins in 2001. Many analysts have called for the sale of the division for some time. Mr Immelt apparently now believes that this division no longer fits his growth model.
GE began making appliances in 1907. Appliance Park was built in 1951. At the peak over 25,000 employees worked at the park making refrigerators, stoves, dishwashers, washers, and dryers. Today, around 3000 employees work in the 1000 acre facility.
Potential buyers have been listed as LG, Haier, and Royal Philips Electronics.
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