Electrolux buys GE Appliances
Swedish home appliance maker Electrolux said Monday it had signed a 3.3-billion-dollar deal to buy US rival GE Appliances.
Electrolux said the deal, its biggest ever, would strengthen its footprint in North America and boost its overall global position. It expected the acquisition to generate 300 million dollars worth of savings per year.
One-time costs were estimated at 300 million dollars.
The deal, which Electrolux secured through a bridge loan, is expected to be completed in 2015, hinging on approval from competition regulators.
Electrolux share prices were up more than 8 per cent on the Stockholm bourse.
“We believe this deal will be approved by the regulators, otherwise we would not be initiating it,” Electrolux chief executive Keith McLoughlin said during a conference call.
Under a licensing arrangement, Electrolux will use the GE Appliances brand for an initial 40-year period.
Jeff Immelt, chief executive of conglomerate General Electric, said in a statement that GE Appliances is “a perfect fit with Electrolux and its goal of accelerating growth in the US.”
Last year, GE Appliances reported sales of 5.7 billion dollars. The company has 12,000 employees and nine production plants.
It has its headquarters in Louisville, Kentucky, and generates more than 90 per cent of its revenue in North America.
It makes refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters.
With the deal, Electrolux also takes over GE Appliance’s 48.4 per cent share of Mexican-based joint venture Mabe.
More tech news
Microsoft under more scrutiny in China
Loading ...