Electrolux takes on Whirlpool in U.S. with $3.3 billion GE Appliances buy

http://www.reuters.com/article/2014/09/08/us-general-electric-divestiture-idUSKBN0H30AG20140908



Electrolux takes on Whirlpool in U.S. with $3.3 billion GE Appliances buy
By Simon Johnson and Sven Nordenstam
STOCKHOLM Mon Sep 8, 2014 8:33am EDT

(Reuters) - Sweden's Electrolux (ELUXb.ST) said on Monday it would double U.S. sales by paying $3.3 billion in cash for General Electric Co's appliances business in its biggest ever deal, giving it the scale to go head-to-head with larger rival Whirlpool (WHR.N).

GE's (GE.N) century-old household appliance business, which had $5.7 billion in 2013 revenue, could help the Swedish company expand beyond its core European market where growth has trailed that in North America.

Electrolux, the world's second-largest appliance maker by sales, will see its annual sales in North America more than double to over $10 billion, similar in size to Whirlpool's sales there. It also gets to keep the iconic GE Appliance's brands.

"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.