As communicated on the Electrolux website, the company announced it has entered into an agreement to acquire the appliances business of General Electric for a cash consideration of USD 3.3 billion. The headquarters of GE Appliances is in Louisville, Kentucky. The company generates more than 90% of its revenue in North America and has nine manufacturing facilities with 12,000 employees. GE Appliances’ product portfolio includes refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters. “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 (in the picture). “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.
Completion of the transaction is mainly subject to regulatory approvals. The acquisition is expected to close during 2015.
