The Swedish company Electrolux is buying GE’s Louisville-based appliance business for $3.3 billion, GE announced in a news release early Monday.
The sale has been rumored for months. Electrolux will use the GE Appliances brand name, according to the news release.
The companies are targeting 2015 to close the deal; the sale, which must go through closing procedures and regulatory approvals, has been approved by the boards of directors of Electrolux and GE.
Based in Appliance Park, GE Appliances has more than 6,000 employees in Louisville with an annual payroll of $370 million.
“We are creating a new type of industrial company, one with a balanced, competitively positioned portfolio of infrastructure businesses with strong advantages in technology, growth markets, driving customer outcomes, and a culture of simplification,” GE’s Chairman and chief executive Jeff Immelt said in a released statement.
In the announcement, Keith McLoughlin, president and CEO of Electrolux, said: “GE Appliances is a well-run operation with strong capabilities in key areas such as R&D, engineering, supply chain and customer service. We look forward to joining forces with their team of talented and competent people.”
We’ll have more on the sale later today.
Update 7:56 p.m. Statement From the Mayor
Mayor Greg Fischer issued a statement Monday morning on the GE-Electrolux deal:
“GE has been an important part of Louisville’s economy and culture for decades. Electrolux is a fantastic global brand that we welcome to our city. GE has made unprecedented investments in its people, innovation capabilities, and manufacturing plants in Louisville in the past few years. Along with our partners in state government, we will work with Electrolux leadership to present the advantages and capabilities of our community to grow the combined GE Appliances – Electrolux platform even further.”