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Fairfield's GE Sells Appliances Business To Electrolux For $3.3B

FAIRFIELD, Conn. -- GE has signed a definitive agreement to sell its signature appliances business to Electrolux for $3.3 billion, the Fairfield-based business announced Monday.

As part of the transaction, GE has entered into a long-term agreement with Electrolux to continue use of the GE Appliances brand. The transaction has been approved by the boards of directors of GE and Electrolux and remains subject to customary closing conditions and regulatory approvals. It is targeted to close in 2015.

“This transaction is consistent with our strategy to be the world’s best infrastructure and technology company,” said GE Chairman and CEO Jeff Immelt. “We are creating a new type of industrial company, one with a balanced, competitively positioned portfolio of infrastructure businesses with strong advantages in technology, growth markets, driving customer outcomes, and a culture of simplification.”

GE has taken steps this year to reshape and focus its portfolio. In June, GE’s offer for Alstom’s Power and Grid businesses was accepted by the Alstom board and recommended by the French government. In August, GE completed the IPO of its North American Retail Finance business, Synchrony Financial, the first step in a planned, staged exit from that business.

The 2014 portfolio activity continues the company’s longer-term redeployment of capital from non-core assets such as media, plastics and insurance to higher-growth, higher-margin businesses in oil and gas, power, aviation and healthcare. 

“GE Appliances is a great business and we are proud of the role it has played in GE’s history,” Immelt said. “Electrolux is the right global business for our customers, consumers and employees. We have greatly strengthened this franchise in the past few years. GE Appliances’ people, valuable home appliances brand, products, distribution, and service capabilities make it a perfect fit with Electrolux and its goal of accelerating growth in the U.S.

"Like GE Appliances, Electrolux has a nearly 100-year history in home appliances and they share the same principles of quality, innovation and customer value as GE. They are committed to supporting the growth of GE Appliances and value the GE Appliances team and its capabilities.”

Keith McLoughlin, president and CEO of Electrolux, praised the deal.

“GE Appliances is a well-run operation with strong capabilities in key areas such as R&D, engineering, supply chain and customer service,” said McLoughlin. “We look forward to joining forces with their team of talented and competent people.”

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