General Electric is looking to sell its security business, which makes alarms, surveillance systems and other safety products, and hopes to attract bids in the range of US$2Bfor the unit. The US conglomerate has received preliminary indications of interest from rival manufacturers looking at the unit, and is now working towards securing another round of more definitive bids. The move to sell part or all of GE Security – one of more than a dozen business units at the manufacturing conglomerate – represents a step in GE’s effort to exit lines of business that are not key to its operations. GE Security builds fire, safety and security systems and other products for homes, offices and the government. The selling process is being managed by JPMorgan has drawn interest from GE’s rivals in the security sector such as United Technologies, Tyco and Germany’s Robert Bosch GmBH. Security assets have historically lured private equity buyers, but a combination of the difficult financing environment and an expressed interest by GE in selling the assets to a strategic buyer could hamper any buyout effort. GE, known for making products ranging from light bulbs to washing machines, has particularly suffered lately from its exposure to the financial services industry, but it is not the only manufacturing conglomerate looking to shed non-core assets.
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