Is GE's Fire Division its Real Strength?

By John Honovich, Published Sep 02, 2009, 08:00pm EDT

While the consensus is strong that GE's security and video products are weak, 2 analysts argue that the real strength is in its Fire division. Read report by UK analyst [link no longer available] and comments by Sandy Jones [link no longer available].

GE's Fire division [link no longer available], was acquired [link no longer available] from Edwards System Technologies in 2005 for $1.4 B USD.

Jones notes, "The fire business is probably the jewel in the crown — I think you will see many bidders for that piece; it’s excellent."

The UK analyst claims that GE has a significant market share in the Fire market that is mature and not fragmented. Large security buyers would be interested in this rare opportunity to acquire a major stake in the Fire division.

Jones remained critical about GE Security's performance: "They just didn’t know the market and they handled it in such a way it helped to undermine what good technology they had."

The UK analyst does believe a breakup is likely to produce the best outcome for GE.

I do not know the Fire market and cannot make any meaningful comment.

1 report cite this report:

GE Security Sale -- UTC to Buy GE Security on Nov 09, 2009
UTC has agreed to buy GE Security - confirmed directly by UTC [link no longer...
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