Boston, MA 09/08/2014 (wallstreetpr) – It’s a bidding time for over 100-years old GE business! Sweden-based Electrolux AB (ADR) (OTCMKTS:ELUXY) announced today that it would be acquiring General Electric Company (NYSE:GE)’s appliances business in a dealworth $3.3 billion. Quite interestingly, the GE Appliances also is the maker of world’s first electric toaster that laid its foundation approximately over 100 years ago.
Largest Acquisition for Electrolux
The move will help Electrolux AB (ADR) (OTCMKTS:ELUXY) to enhance its foothold in North American market. Buying General Electric Company (NYSE:GE) Appliances will indeed give a push to Electrolux business; given that this is the biggest ever deal of Swedish company. Stockholm-based company enjoys a second position in the entire world, in terms of home appliances business, only after the U.S.-based Whirlpool Corporation (NYSE:WHR).
Electrolux announced that the transaction is subject to regulatory approval and will be finished finally in the year 2015. The CEO of the company, Keith McLoughlin feels that the acquisition will take Electrolux to an all-new level of success, market coverage as well as global reach.
GE’s Strategy to Sell Profitable Industrial Products
In August 2014 only, General Electric Company (NYSE:GE) had made announcement regarding sale of its appliances business as a part of company’s strategy to keep an eye on more intricate and money-generating industrial equipment business.
Kentucky-based GE Appliances has a wide line of products ranging from Air Conditioners, Freezers, Refrigerators and cooking products to dish washers and dryers. This division made earnings of $381 million in the year 2013 in terms of $8.3 billion in sales.
Right Issue Planned by Electrolux
After the acquisition competes in the year 2015, Electrolux AB (ADR) (OTCMKTS:ELUXY) also has plans of rights issue pertaining to around 25% of this purchase.
CEO of GE, Jeff Immelt said that the offerings of General Electric Company (NYSE:GE) Appliances such as distribution, products, people and services, apart from of course, the home appliances, makes the business suitable match for Electrolux. He added that this will help Electrolux in growth acceleration in The States.
