General Electric Seeks Bids For Plastics Unit
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General Electric Co. is seeking bids of as much as $10 billion for its plastics unit, people with direct knowledge of the auction said, after struggling with rising costs for crude-oil based chemicals.
Private-equity firms may be bidders, said the people, who asked not to be identified because the talks are private. GE spokesman Russell Wilkerson declined to comment on plans for the 77-year-old business, which still makes products born of founder Thomas Edison’s experiments.
Profit in the plastics unit fell 23% in the third quarter as raw-material costs rose. Chief Executive Officer Jeffrey Immelt said last month that the plastics division is “in a difficult spot” and that he’s not necessarily committed to waiting for its fortunes to improve.
“It’s nice to see them get away from low-margin businesses like this,” an analyst at Becker Capital Management, Mike McGarr, said.
