GE to unload appliance business to China's Haier

GE has agreed to sell its appliance business to China's Haier Group for $5.4 billion. The sale has been approved by the boards of both firms, GE said. The transaction was announced Friday after GE walked away from a $3.3 billion offer weeks ago from Sweden’s Electrolux, following months of opposition from U.S. antitrust regulators. Together, GE and Electrolux would have created a company that would have been an equal competitor against Whirlpool Corp. (Benton Harbor, MI), which has around a third of the U.S. market.

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, headquartered in Qingdao, is the world's largest appliance maker, with 2014 revenue of $32.6 billion.

“Haier has a good track record of acquisitions and of managing brands,” GE’s Chairman and Chief Executive Officer 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, according to the firm. The business unit reported $5.9 billion in 2014 revenue. It has 12,000 employees, 96% of them in the U.S.

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 has been eager to sell off its consumer-focused business and shift gears towards making products such as gas turbines, oilfield equipment and jet engines and expand in other technology areas like medical equipment and clean energy.

The transaction is expected to be finalized in mid-2016, subject to regulatory approval.