Software
Houzz Logo Print
mschuma_gw

What to do with GE

18 years ago

With the impending auction of the GE Appliance unit it is likely that an overseas company(ie LG, Haier, or Bosch) will buy the division at a 30-50% discount given the weakness of the US dollar. Putting on my I-Banking hat for a minute the best case scenario as I see it:

Private equity group like Blackstone or Bain Captal offers to buy GE. At the same time they buy a company like Prizer Painter(Blue Star). Blue Star is a great fit b/c GE needs a commercial stove to complete Monogram line...(contract with DCS is over)

Step 1 - Sell off the lower margin business..worth at least 1-3 Billion US(Keep Monogram, Profile, and Cafe lines)...all manufactured in the same factories. They must get away with selling to everyone...someone building a 2 million dollar home does not want to outfit their home with the same brand of appliances that are found in most apartment complexes...

Step 2 - Replace GE logo with Bluestar logo...

Goal would be to target the high to middle end markets...With the current housing situation extreme high end market is in the tank(Sub Zero, Miele, Viking are all struggling)

just a suggestion...would welcome anyone else's feedback on possible scenarios...

Comment (1)