Electrolux acquires GE Appliances business, will continue brands
Electrolux will acquire the GE Appliances business for $3.3 billion in a transaction that will see the GE Appliances brand continue in the marketplace.
The transaction has been approved by the boards of directors of GE and Electrolux and remains subject to customary closing conditions and regulatory approvals, and is targeted to close in 2015.
“This transaction is consistent with our strategy to be the world’s best infrastructure and technology company,” said GE Chairman and CEO Jeff Immelt. “We are creating a new type of industrial company, one with a balanced, competitively positioned portfolio of infrastructure businesses with strong advantages in technology, growth markets, driving customer outcomes, and a culture of simplification.”
GE has taken significant steps in 2014 to reshape and focus its portfolio. In June, GE’s offer for Alstom’s Power and Grid businesses was accepted by the Alstom board and recommended by the French government. Power & Water is one of GE’s higher growth and margin industrial segments and is core to the future of GE. In August, GE completed the IPO of its North American Retail Finance business, Synchrony Financial, the first step in a planned, staged exit from that business.
“GE Appliances is a great business and we are proud of the role it has played in GE’s history,” Immelt continued. “Electrolux is the right global business for our customers, consumers and employees. We have greatly strengthened this franchise in the past few years. GE Appliances’ people, valuable home appliances brand, products, distribution, and service capabilities make it a perfect fit with Electrolux and its goal of accelerating growth in the U.S. Like GE Appliances, Electrolux has a nearly 100-year history in home appliances and they share the same principles of quality, innovation and customer value as GE. They are committed to supporting the growth of GE Appliances and value the GE Appliances team and its capabilities.”
“GE Appliances is a well-run operation with strong capabilities in key areas such as R&D, engineering, supply chain and customer service,” said Keith McLoughlin, President and CEO of Electrolux. “We look forward to joining forces with their team of talented and competent people.”
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Topics: Appliances, Cooktops, Dishwashers, Disposers & Compacters, Energy Star, Freezers, Interior Design, Kitchen, Microwave Ovens, Rebates / Tax Credits, Washers & Dryers, Water Filtration & Water Quality