Appliances manufacturer Electrolux announced Monday its intent to purchase GE Appliances in the Sweden-based company's largest acquisition ever. According to the New York Times, the $3.3 billion deal will give GE the opportunity it's been looking for to focus more on its industrial divisions. Both brands call the agreement an excellent fit. Electrolux, which returned to the Ktichen & Bath Industry Show last year after a hiatus, calls GE Appliances "one of the premier manufacturers of kitchen and laundry products in the U.S." GE, responsible for bringing electric toasters, washing machines, and hermetically sealed refrigerators to the masses in the United States, says Electrolux is "the right global business" to work with on this large-scale deal.
"Like GE Appliances, Electrolux has a nearly 100-year history in home appliances and they share the same principles of quality, innovation and customer value as GE," says GE Chairman and CEO Jeff Immelt. "They are committed to supporting the growth of GE Appliances and value the GE Appliances team and its capabilities.”
As part of the deal, Electrolux has agreed to continue using the GE Appliances brand name, which carries name recognition among consumers and construction professionals. In 2013, BUILDER completed its most recent Brand Use Study in which industry professionals were asked about their brand preferences across dozens of product categories. GE Appliances ranked in the top 3 in brand familiarity for the Dishwashers, Laundry, Ranges and Cooktops, and Refrigerators product categories, and was No. 1 in the same four categories for brands used in the last two years, and brands used most. Meanwhile, brand use and recognition for Electrolux products was far lower. Its best showing was in the Laundry category where it ranked 9th among brands used in the last two years and brands used most. The GE Appliances acquisition is likely to bolster its positioning across all categories.
>“This is an historic moment and important strategic move for the Electrolux Group, which takes our company to a new level in terms of global reach and market coverage," says Keith McLoughlin, president and CEO of Electrolux. "GE’s premium, high-quality appliances complement our own iconic brands and will enhance our presence in North America. The acquisition, which is our largest ever, strengthens our commitment to the appliance business and also provides Electrolux with the scale and opportunity to accelerate our investments in innovation and global growth.”
Both brands expect the sale to be completed in 2015.
