Electrolux, others in talks to buy GE's appliances business

Thu Aug 14, 2014 2:55pm EDT
 
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By Anna Ringstrom and Soyoung Kim

STOCKHOLM/NEW YORK (Reuters) - World number two home appliances maker Electrolux (ELUXb.ST: Quote) said it was in talks to buy General Electric's (GE.N: Quote) household appliances business, seeking to increase its foothold in North America which is growing faster than its other main markets in Europe.

GE confirmed it is evaluating strategic options for the home appliances business, including discussions with the Swedish group and other interested parties.

New York start-up Quirky, which has partnered with GE to market smart-home products, is another suitor for the GE business and is working with an investment bank to put together a bid, one person familiar with the matter said.

"AB Electrolux today confirmed that it is in discussions regarding a possible acquisition of the appliances business of GE. No agreement has been reached," Electrolux, a smaller rival to Whirlpool (WHR.N: Quote), said in a statement on Thursday.

GE's home appliances business, which sells products under the GE Monogram, GE Cafe and Hotpoint brands, could be worth between $2 billion and $2.5 billion, according to people familiar with the matter, who asked not to be named because they were not authorized to speak with the media.

The U.S. diversified conglomerate is trying to sell its home appliances unit as Chief Executive Jeffrey Immelt seeks to allocate resources to higher-growth businesses.

The unit is almost exclusively focused on the U.S. market and lacks a global scale, and GE believes it could be more valuable when being part of a global appliances group such as Electrolux, said one person familiar with the divestiture plan.

Electrolux, which sells under brands such as Frigidaire, AEG and Zanussi as well as its own name, declined to comment further. Quirky did not immediately respond to requests for comment.   Continued...

 
The logo of U.S. conglomerate General Electric is pictured at the company's site in Belfort, June 23, 2014.    REUTERS/Vincent Kessler