GE Appliance brand to remain and still head quartered in Louisville
GE has announced it is selling its appliances business to Qingdao Haier for $5.4billion, and the transaction is targeted to close mid 2016.
As part of the transaction, GE has entered into a long-term agreement with Haier to continue use of the GE Appliances brand and Louisville will remain the headquarters for GE Appliances.
The acquisition follows GE calling off a sale to Swedish appliance manufacturer Electrolux.
GE Chairman and CEO Jeff Immelt said: “We are pleased to be selling our appliances business to Haier, which 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.”
Immelt continued: “Haier has a good track record of acquisitions and of managing brands. Haier has a stated focus to grow in the US, 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.”
Chairman and CEO of Haier Group Zhang Ruimin stated: “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. Haier is committed to investing in the US.”