Posted on 09/08/2014 1:09:55 PM PDT by upchuck
STOCKHOLM (Reuters) - Sweden's Electrolux AB (ELUXb.ST) said on Monday it would double U.S. sales by paying $3.3 billion in cash for General Electric Co's (GE.N) appliances business in its biggest ever deal, giving it the scale to go head-to-head with larger rival Whirlpool (WHR.N).
GE's 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 brands.
The GE unit sells refrigerators, stoves, air conditioners and water heaters under the GE Monogram, GE Cafe and Hotpoint 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.
While the price tag is higher than the $2 billion to $2.5 billion figure that some people familiar with the business had estimated, analysts said the company was not overpaying. The deal includes GE's 48.4 percent stake in Mexican appliance maker Mabe.
Reuters reported on Sept. 4 that Electrolux was near a deal to buy the GE business for more than $2.5 billion and could announce the agreement as soon as this week.
Experts speaking on condition of anonymity said they did not expect the deal to be blocked by antitrust concerns. However, they said that, depending on what market share each company has in the market for a particular kind of appliance, Electrolux might have to sell off that part of the business.
(Excerpt) Read more at reuters.com ...
GE applicances suck, maybe they can do it better.
GE was Thomas Edison’s company at one time.
At one time the GE brand was top notch! I think much of the GE stuff sold in the US, is made in China.
Yeah we had one of their refrigerators. In researching our problems I realized the problems were widespread
GE Appliances are largely made in the USA and Mexico.
Only microwaves are mostly made in China.
GE wants 15%+ profit margins for all its divisions.
GE Appliances can’t improve much more than their current 4.9%.
Now, if they could restore the brand to its former glory of decades ago I might be happy enough to buy a new one instead fixing the old one.
But really, what are the chances of that happening? That would be like fixing GM. Can't get there from here.
I think most GE appliances like washers and dryers are made at GE’s Appliance Park in Louisville, KY
Here’s the local liberal Gannet’s take on this:
They can’t make refrigerators like your old GE because of Federal Energy Star regulations and similar regulations in the EU.
Modern Refrigerators need a major repair every 10 years(usually makes more sense to buy a new one) or so if you get a good one less if you get a lemon.
Yeah, they have some division showing more promise
GE Oil & Gas Technology
http://www.ge-energy.com/about/oil_and_gas.jsp
Monogram line is good stuff but expensive.
I have a GE microwave. Bought for me as a housewarming gift by my parents in 1989. Most dependable appliance I’ve ever owned.
Just bought a GE washer back in February. I’ll be happy if I get 10 years out of it.
We had a lot of problems with our GE fridge, stove, and microwave.
Replaced the fridge with samsung and have had good luck with it so far.
I've wondered if that's the reason they quit selling their Refreshment Center "Door in Door" option, where instead of opening the entire door, you open a small door on the door that folds down to form a handy shelf to set a glass and pour.
I thought they might not have sold enough to keep the option or maybe it made it harder for them to meet some new efficiency standard.
However, when they and LG (and Samsung?) quit selling it, they introduced a new, much larger door in door.
Unfortunately, it's a different design and of no interest to me. I want the small fold down shelf style door in door. I love that thing and use it constantly.
Oh well...I guess I'll just keep mine and keep it going.
I assumed your fridge was older.
But in any event refrigerator compressors get smaller and more efficient every few years but less powerful and less capable of maintaining consistent temps after opening and closing fridge and freezer doors all day long.
Electrolux started w Vacuum Cleaners.....so...
Well my Father Grandfather and Greatgrandfather(who came from Sweden) all worked at GE,Schenectady,NY from about 1900. What my Swedish Grandma, Olga called “yee ee” now goes to Sweden.
I suspect the anonymous experts are a little richer today...Why should anyone be concerned with antitrust laws when huge profits are at stake???
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