SWEDEN: AB Electrolux today announced it has entered into an agreement to acquire the US appliances business of General Electric for $3.3bn.
A possible deal was first revealed by the Cooling Post on August 17, when Electrolux confirmed rumours of its interest.
In 2013, GE Appliances had sales of $5.7bn and earnings of $390m including share of income from Mabe.
“This is an historic moment and important strategic move for the Electrolux Group, which takes our company to a new level in terms of global reach and market coverage. GE’s premium, high-quality appliances complement our own iconic brands and will enhance our presence in North America” said Keith McLoughlin, president and CEO of Electrolux. “The acquisition, which is our largest ever, strengthens our commitment to the appliance business and also provides Electrolux with the scale and opportunity to accelerate our investments in innovation and global growth.”
The acquisition includes a 48.4% shareholding in the Mexican appliance company Mabe. For nearly 30 years, GE Appliances has had a joint venture with Mabe in Mexico where Mabe develops and manufactures portions of GE Appliances’ product offering.