Last month saw one of the most historic moments in the entire span of the lighting business: General Electric’s sale of its iconic light bulb business to a recent entry in the home automation sector, Savant Systems. As the literal foundation of the famed conglomerate and its first consumer product, the transfer of the lighting business marks the end of one era…and the start of a new one.
Putting the sale in the context of the overall corporate profile of GE is important in understanding this sale. GE, once one of the largest and most admired companies in the world, has fallen on hard times more recently and has been moving to shed marginal businesses to focus on its core categories including aviation, industrial engines and health care technology
Lighting was in fact the last household consumer products business GE still retained. In 2016 it sold its major appliance business unit to Haier, a Chinese company looking to expand its global business outside its domestic market. Haier was allowed to continue to use the GE brand as will Savant.
Going even further back, the company sold both its kitchen appliance and consumer electronics businesses decades ago to companies that continued to sell products under the GE brand, although eventually they were phased out.
But lighting held a special place in GE history. When the modern day General Electric was created in 1892, it took Thomas Edison’s original company and merged it with another firm in the industry and its original products were the famous Edison bulbs. A lot has changed since then – in light bulbs, at GE and in the way Americans power and light their homes – but the light bulb remained so much the symbol of the company that it was often featured in its advertising and marketing and its long-time slogan, “We bring good things to life” was a clever homage to its origin.
Now Savant will own the business and the brand, something CEO Bob Madonna couldn’t be more excited about. “It’s an honor to have GE Lighting’s legacy as part of the Savant family. This is a company I have a personal affinity for. Having grown up close to GE’s former Fairfield, CT headquarters, I recognize the privilege that comes with taking on such an iconic brand. That’s why combining that history with the forward-thinking approach and innovations we’ve made in the smart home category at Savant is such a natural fit.”
Madonna said he sees the GE line-up complementing Savant’s portfolio with new combinations in smart home products under the C by GE brand as well as LED, grow and vintage bulbs.
Special emphasis will be placed on the smart home space, he said. “Together, we'll become a true powerhouse in end-to-end lighting control and smart home solutions. I’m excited to lead Savant and GE Lighting into the future of the smart home category, building best-in-class lighting and connected solutions for our customers.”