5.4 C
March 1, 2021

Electrolux to buy GE appliance business for USD 3.3 bn

General Electric said on Monday that it had agreed to sell its appliance business for USD 3.3 bn in cash to Electrolux of Sweden, parting ways with the century-old division that gave birth to the washer-dryer and the toaster oven, nytimes.com informs.
The acquisition is expected to significantly bolster Electrolux’s growing business in North America and marks the latest in continuing efforts by Jeffrey R. Immelt, the chairman and chief executive of G.E., to focus the conglomerate on its core industrial businesses. As part of the deal, Electrolux would continue to use the G.E. Appliances brand name. The companies confirmed in August that they were in talks. G.E. had first tried to sell the division six years ago, when Electrolux and the Asian appliance manufacturers Samsung and LG were among companies taking part in negotiations. But those talks fell apart in the onset of the financial crisis.
Electrolux, already one of the world’s biggest manufacturers of home appliances and industrial equipment, posted sales of 109 billion Swedish kronor, or about USD 15.3 billion, last year. G.E.’s appliance division generated USD 5.7 billion in revenue in the same period. The Swedish company draws nearly half of its sales from the Americas, with kitchen appliances making up 60 percent of sales. The combined Electrolux-G.E. Appliances would have about 73,000 employees worldwide.

Related posts

Ex-IMF head Strauss-Kahn joins Rosneft Bank

Nine O' Clock

Price of Transylvania Highway halved

Nine O' Clock

Honey production to drop 30pct due to drought, bee depopulation

Nine O' Clock