UPDATE: Electrolux in talks to buy GE appliance business - WDRB 41 Louisville News

UPDATE: Electrolux in talks to buy GE appliance business

Posted: Updated:
LOUISVILLE, Ky. (WDRB) -- General Electric confirmed that it is considering the sale of its historic appliance division as part of its effort to focus on selling more complex and more profitable industrial equipment, according to the Associated Press.

Swedish giant AB Electrolux is talking with GE about buying its appliance business, which would include Louisville's Appliance Park and its roughly 6,000 employees.

Electrolux confirmed its interest in a statement on its website Thursday.

"No agreement has been reached, and there can be no assurances that an agreement will be reached," Electrolux said. 

Electrolux makes household appliances under the Frigidaire name, among other brands.

In July, Bloomberg News reported that GE had put its appliance business up for sale again after failing to find a buyer amid the economic recession in 2008.

GE has instead invested millions in Appliance Park and brought back thousands of jobs since 2009.

Chip Blankenship, CEO of GE's Appliances and Lighting division, told employees in an email Thursday that while those investments have helped GE, "the industry gets more competitive by the day. We need to look at new models to increase our competitiveness in this environment, which is why the discussions are taking place with Electrolux."

Blankenship's email, obtained by WDRB, is below:

Team:

GE confirmed today that the company is evaluating a wide range of strategic options for our Appliances business, including discussions with Electrolux and other interested parties.

Let me explain why GE is engaging in this process. GE Appliances is a great business with many strengths…our brand, products, distribution and service networks, and talented team. The company’s investment in the business since 2010 to transform our products and U.S. factories has made us stronger. However, the industry gets more competitive by the day. We need to look at new models to increase our competitiveness in this environment, which is why the discussions are taking place with Electrolux.

It’s impossible to speculate about the outcome of the discussions. However, I can assure you that if an agreement is reached, and the sale progresses, the goal of both parties is to create a combined business that is better positioned to win with customers and consumers.

In the event these discussions lead to an agreement we will do everything we can to provide that news promptly to employees, customers and the communities in which we operate.

In the meantime, our #1 priority is to deliver on our commitments to our customers and consumers. They will want to know that they can count on GE. Our job is to show them that they can.

Thank you.

Chip



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