GE chairman and chief executive officer Jeff Immelt said: “We are pleased to be selling our appliances business to Haier, which is committed to growing the business globally”.
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A multi-billion dollar agreement between GE and a Chinese company would keep thousands of jobs and the headquarters of GE Appliances in Louisville.
GE has been running an auction for the century-old appliance business since it abandoned a $3.3 billion sale to Swedish home appliances maker Electrolux AB (0MDT.L,0GQ1.L,ELUXY.PK) in December.
Immelt said that GE Appliance was performing very well and there is a significant amount of interest from possible buyers, helping to drive a strong deal, which benefits GE investors, employees and customers.
This video includes images from Getty Images.
At a news conference Friday morning to address the acquisition, Louisville Mayor Greg Fischer said Haier likely will use GE Appliances and Louisville to springboard its presence in the United States.
Since then, Haier has re-launched the $500 million business as a mass-premium lifestyle line, and could ostensibly leverage GE’s considerable prowess in laundry, bottom-mount refrigeration, logistics, R&D and the contract channel.
Haier, the world’s biggest appliance manufacturer, with US headquarters in Wayne, announced the deal Friday.
While GE has a long history as an appliance maker, this business was simply no longer relevant for the company. The Company will provide more details on the gain and restructuring on its fourth-quarter earnings call on January 22, 2016. Ltd. agreed to pay $5.4 billion for GE Appliances.
Haier has close ties to the ruling Communist Party, and Zhang is an alternate member of the party’s elite central committee.
GE, headquartered in Fairfield, Connecticut, announced plans earlier to sell the appliance business to Sweden’s Electrolux for $3.3 billion.
The agreement also yielded a long-term strategic partnership in advanced manufacturing, industrial Internet and healthcare, and a commitment from GE to help Haier to enhance its manufacturing efficiencies.
Electrolux, GE and larger competitor Whirlpool (WHR.N) make up more than 90 percent of major kitchen appliances sold to homebuilders, according the DOJ. The acquisition will let Haier vault over Panasonic and Procter & Gamble into fifth place. GE and Haier will also jointly work on creating affordable consumer health initiatives in China, according to a statement.
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In a statement reported that from shareholders and regulators, the deal has yet to get approval.
