General Electric Company (NYSE:GE) is negotiating with Electrolux AB (ADR) (OTCMKTS:ELUXY) (STO:ELUX-A) regarding the sale of its home appliance business.
“GE is evaluating a wide range of strategic options for our appliances business including discussions with Electrolux and other interested parties,” said Seth Martin, the spokesperson of General Electric Company (NYSR:GE) in a telephone interview with Bloomberg.When asked about other potential bidders, Martin refused to comment.
Electrolux confirms interest in GE’s home appliance business
Electrolux AB (ADR) (OTCMKTS:ELUXY) (STO:ELUX-A) manufacturer of household and professional use appliances confirmed its interest in the business unit, but indicated that there is no guarantee that it would reach a deal with General Electric Company (NYSE:GE).
Electrolux is the second-largest company selling appliances in the United States in terms of sales. The Swedish company is the maker of AEG stove and Frigidaire refrigerator brands. It is seeking to increase its revenue in Europe and the United States after suffering stagnant sales over the past several years.
Last month, Keith McLoughlin, the CEO of Electrolux AB (ADR) (OTCMKTS:ELUXY) (STO:ELUX-A) said that the company intends to expand organically, but it would also consider acquisitions if the management of the company “see an opportunity that makes sense.”
Quirky Inc also interested in GE’s business unit
Two people familiar with the situation indicated that Quirky Inc., a consumer-product development start-up is interested in acquiring the home appliance business unit of General Electric Company (NYSE:GE). According to them, GE could sell the business unit for at least $2 billion. They suggested that Quirky may work with private-equity firms to acquire a minority stake, and GE retains a minority stake in the unit.
General Electric Company (NYSE:GE) is one of the investors of Quirky, which develops products based on ideas submitted by a community of online users. In November, GE invested $30 million to Quirky.
Last year, General Electric Company (NYSE:GE) partnered with Quirky to develop a line of smart-home devices including air conditioners that can be controlled using a smartphone. As part of the agreement, GE opened its thousands of patents to the startup.
General Electric Company (NYSE:GE) is trying to sell its home appliance business for the second time as CEO Jeffrey Immelt focuses on industrial operations. In 2008, the company engaged the services of Goldman Sachs Group Inc (NYSE:GS) to explore alternatives for the unit.