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 ...
Hopefully Electrolux will start making robotic floor cleaners to compete with iRobot. For its part, iRobot is tantalizingly close to having an “essential home appliance”, with its Roomba and Scooba products.
The goals are a quiet, low maintenance system, that sacrifices speed and noise for detail and self maintenance. Ideally, it works all night, most every night, emptying and recharging itself, whether it is dry or wet.
If they come up with a good enough system, furniture redesign would be worth it.
It's my oldest appliance now, almost 25 years and counting. Seems a bit old for most major appliances these days.
None the less, it's a keeper until something better comes along.
I’ve had - and replaced 5 iRobot vacuums. The bearings in the deck would get clogged with animal hair and melt.
Happy to say my Neato is on year three and going strong, no Roomba lasted more than eight months with me and I cleaned it very thoroughly...
We LOVE the Neato!
I know GE made some very good kitchen stoves. Don’t know about them now. Was in the market for a new washer last year and everybody told me to stay away from GE stuff.
If it was made before 1993 it was made before the new Energy Star regulations came into effect.
I did not know that the door in a door option was available that far back.
If you really like I would just keep fixing it as long as parts are available.
Appliance companies make a 20 year commitment to supply parts for their products but suppliers will keep making parts for third party repair shops and parts distributors as long as it is profitable.
We just got a Whirlpool stove last weekend. It’s made in America. The broiler is at the top of the oven so I don’t have to lie on the floor and watch to make sure the marshmallows don’t burn on the yams this Thanksgiving.
Thanks for the info. I hoped something like that might be the case, especially for the more popular models with universal parts across several brands and product lines.
I was cursed by having been born under the star of the handyman and am compelled to fix things. I can't explain why. I know I'm not alone.
Sounds like you've got the curse, too, or work with people who do.
While sounds good for vacuuming, I really want a robot that is good for hard floor washing.
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