China’s Haier buys GE’s appliance business in $5.4 billion deal
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Consumer product maker General Electric (GE) has agreed to sell its appliance business to China’s Haier Group for US$5.4 billion.
According to GE, its Appliance Park manufacturing operation in Louisville, Ky., is the largest injection molding facility in the state and the fourth largest in the U.S.
Haier, which is headquartered in Qingdao, is said to be the world’s largest appliance maker, with 2014 revenue of US$32.6 billion.
“Haier has a good track record of acquisitions and of managing brands,” GE’s Chairman and CEO Jeff Immelt said in a statement. “Haier has a stated focus to grow in the U.S., build their manufacturing presence here, and to invest further in the business.”
GE Appliances will remain headquartered in Louisville, Ky., the statement also said.
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.”
The transaction is expected to close in mid-2016, subject to regulatory approval.