GE announced it's considering spinning off its Consumer and Industrial businesses, which includes appliances, lighting and industrial, to current GE shareholders.
GE Chairman and CEO Jeff Immelt explained, in a press release, this route was the most efficient way to complete the transformation of the industrial portfolio. GE officials expect to complete the spin-off transition by the middle of 2009.
The media release also quotes Immelt as saying, "Consumer and Industrial would benefit by keeping a world-class leadership team intact, its employees together and would have the ability to control their own destiny."
The business will continue to be led by President and CEO Jim Campbell.
After learning of the announcement, Governor Steve Beshear and Louisville Mayor Jerry Abramson said it's the best possible scenario for Louisville, KY.
The move would give Louisville the chance to retain the jobs at GE Appliance Park and to become the home of a new Fortune 250 company. The Consumer and Industrial division includes GE's appliances, lighting (including GE Lumination) and industrial units.
Abramson, Beshear and Greater Louisville Inc. have already begun working on a plan to retain the global headquarters of this new company in Louisville.