SWEDISH giant Electrolux confirmed yesterday it hs agreed to buy GE’s appliances business for $3.3bn (£2bn) in its biggest deal to date, boosting its US presence.
Electrolux, whose brands include AEG, Zanussi and Frigidaire, is the world’s second-largest home appliances company with sales of SEK 109bn (£9.5bn) last year.
Following the deal, the US will take over Europe as Electrolux’s single biggest market, generating half of the company’s total sales and enabling it to take on rival Whirpool.
“This is a historic moment and an important strategic move for Electrolux Group,” chief executive Keith McLoughlin said yesterday.
The deal is expected to close next year and will be financed by a bridge facility and a rights issue.