Electrolux is to buy General Electric’s household appliance business for $3.3bn (£2bn).
It is the Swedish company’s biggest deal and gives it a bigger presence in the US primarily to take on arch-rival Whirlpool.
Electrolux, which sells under brands that include Zanussi, Ticity, Parlkinson Cowan and AEG and many more as well as its own name, is currently the world’s second-largest home appliance maker after Whirlpool.
“This is an historic moment and important strategic move,” said chief executive Keith McLoughlin.
Electrolux has been strongest in Europe, while Whirlpool’s market is predominantly in the US.
Mr McLoughlin added in a statement, “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.”
GE’s century-old household appliance business, along with lighting, generated $8.3bn in revenue in 2013. GE’s brands include Hotpoint but, it’s only Hotpoint in the USA, not the UK and Europe which now, in a strange twist of fate with Whirlpool buying Indesit, is now under Whirlpool ownership.
We’re sure there will be no confusion!
“I think it’s a historic event for Electrolux. I’m very excited about it. I think the fit – the strategic fit, the industrial logic – is compelling,” Electrolux Chief Executive Keith McLoughlin told Reuters.
The deal includes GE’s 48.4% stake in Mexican appliance maker Mabe.