Haier Group has reached a deal to buy General Electric Co.'s appliance business for 5.4 billion
- Release on :2016-03-08
Haier Group has reached a deal to buy General Electric Co.'s appliance business for 5.4 billion dollars.
Chinese home appliance maker Haier Group has reached a deal to buy General Electric Co.'s appliance business for 5.4 billion dollars.
The acquisition, announced in a statement Friday, comes as Haier — the world's biggest home appliance maker — tries to transform itself into a premium brand. GE Chairman and CEO Jeff Immelt said Haier "is committed to growing the business globally."
"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," he added.
GE is shifting emphasis from traditional businesses such as appliances to higher-technology areas such as medical equipment and clean energy. The two companies also agreed to form a strategic partnership to cooperate in areas such as the Internet, healthcare and advanced manufacturing.
GE Appliances will remain headquartered in Louisville, Ky., a statement from the firm said. GE Appliances reported $5.9 billion in 2014 revenue and has 12,000 employees, 96% of them in the United States.
Zhang Ruimin, chairman and CEO of Haier Group, said the two companies share the same vision, adding that Haier is "committed to investing in the U.S."
"This transaction underscores Haier's devotion to creating a global platform for innovation, which will benefit both Haier and GE Appliances and deliver enhanced value to all stakeholders," he said.
GE announced plans earlier to sell the appliance business to Sweden's Electrolux for 3.3 billion dollars. They called that off in December after opposition from American anti-trust regulators.
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