Barry Eitel
January 15, 2016•Update: January 17, 2016
CHICAGO
General Electric announced Friday that it would sell its main appliance business to a Chinese company for $5.4 billion and refocus itself to center on technology development.
Haier, a consumer electronics manufacturer based in Qingdao, China, paid cash for GE’s century-old appliance business, which includes the manufacture of equipment like refrigerators and microwaves.
After regulatory approval, the deal is expected to be completed this summer.
“We are pleased to be selling our appliances business to Haier, which is committed to growing the business globally,” GE chairman and chief executive Jeff Immelt said in a statement.
“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.”
Haier has been looking to gain more market share in the Americas. It will keep the appliance division headquarters in Louisville, Kentucky. The deal is the third largest acquisition of an American business by a Chinese company.
“Haier and GE share the same vision, and value innovation, customer service, and developing products of the highest quality,” Zhang Ruimin, Haier CEO, said in a statement.
“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 U.S.”
As GE transforms itself into a tech company in the vein of Google or Intel, it will build a partnership with Haier to explore opportunities in the fields of industrial Internet, health care and advanced manufacturing.
“Together Haier and GE will explore opportunities for joint collaboration and, in doing so, establish a type of new alliance with comprehensive strategic cooperation between two world-class enterprises, which reflects our common understanding on opportunities brought by the Internet Era,” Ruimin said.
