© joingate dreamstime.com Electronics Production | January 15, 2016
GE found a new buyer for its appliances business
GE has signed a definitive agreement to sell its Appliances business to Qingdao Haier for USD 5.4 billion.
The transaction has been approved by the board of directors of GE and of Haier, and remains subject to customary closing conditions, including Haier shareholder approval, and regulatory approvals. The companies expect the transaction to close in mid-2016. “We are pleased to be selling our Appliances business to Haier, which is committed to growing the business globally,” said GE Chairman and CEO Jeff Immelt. “GE Appliances is performing well and there was significant interest from potential buyers, helping drive a good deal which will benefit our investors, customers and employees.” The sale will generate an after-tax gain of approximately USD 0.20 per share at closing. GE says that it expects to offset the gain with restructuring in 2016. As part of the transaction, GE has also entered into a long-term agreement with Haier to continue use of the GE Appliances brand. “Haier has a good track record of acquisitions and of managing brands. Haier has a stated focus to grow in the U.S., build their manufacturing presence here, and to invest further in the business. Innovation, new product introduction and brand management are fundamental to their overall strategy. GE Appliances provides Haier with great products, state-of-the-art manufacturing facilities and a talented team. In addition, we see the opportunity to work together to build the GE brand in China,” Immelt continued. GE and Haier also announced today a long term strategic partnership to explore cooperation in the areas of industrial internet, healthcare, and advanced manufacturing. GE will help Haier enhance the efficiency of its manufacturing plants, while Haier will help implement GE’s Predix platform.