GE in Talks With Suitors to Sell Iconic Appliances Business

[launderess]

IIRC While Few Were Totally Happy With Whirlpool Getting GE

No one wanted the Chinese firms expressing interest to get their mitts on such an iconic American brand. It really came down to the lessor of two evils as don't think there was that much interest.

Worse case would have been for one of those venture capital/turn around things to have gotten a hold of Maytag. They certainly would have gutted and or sold off, gutted and otherwise picked Maytag clean, leaving nothing left but the scraps.

 

[iheartmaytag]

I was happy with Whirlpool getting Maytag

I didn't want Maytag going to China, however, that is exactally where Hoover went when they were sold off in the acquisition.  

 

There were questions about anti-trust though, and that purchase took several months to be approved.  I just don't see a GE purchase by Whirlpool being approved.  BUT I hate the Idea of GE being sold off to a foreign company.  

 

[alr2903]

I think Maytag was pretty well gutted and whittled off long before Whirlpool acquired them.  Poor Maytag rotted from the inside out, a successful corporate raid.

 

[pierreandreply4]

what was better in the ge line of washers?

Here is a little quiz what was better in the ge line of washers the good old fashion filter flo washer line with the good old fashion filter flo pan or today line with plastic wash tubs or stainless steel wash tub if for x reason i would have to buy vintage it would be a good old fashion filter flo washer i have use a filter flo ge washer only once and that was in 1998 during a family vacation with my mom in a rental villa that was after the big ice storm picture 1 or picture 2 lol credit to the original picture taker that i am using for picture number 1

 

[daveamkrayoguy]

C'mon, Mr. CEO! What've ya got 'gainst Ava-Cada?

Aaarrrggghhh!!!! Big Decision, isn't it?! I'm gonna need time to figure this one out... (LOL!)

 

Really! The new-ownership ought'a build REPLICAS<strong> of</strong><strong> the</strong> <strong><strong><strong>'</strong>REAL</strong></strong><strong> DEAL</strong><strong> of</strong><strong> 1970</strong><strong><strong>'</strong>!</strong>

 

 

-- Dave

 

[washman]

The ink is nearly dry

http://www.reuters.com/article/2014...904?feedType=RSS&feedName=businessNews&rpc=76

 

[roto204]

Oh, dear!

I wish I'd been wrong!

"All your bases are belong to us."

 

[kenmore71]

And according to this morning's paper the deal is done. The GE Appliance division has been acquired by Electrolux for $3.3 billion. From the AP:

 

STOCKHOLM — Sweden's Electrolux is buying the appliances business of General Electric for $3.3 billion, boosting its presence on the North American market, the companies said Monday.

The acquisition is the largest ever for Stockholm-based Electrolux, ranked as the world's second biggest home appliance maker after U.S. rival Whirlpool.

Electrolux shares rose 7 percent to 200.50 kronor ($28.27) in early trading in Stockholm.

GE confirmed last month it was in talks to sell its appliances division — maker of the first electric toaster more than 100 years ago — as part of its effort to focus on selling more complex and profitable industrial equipment.

Electrolux CEO Keith McLoughlin said the move, which needs regulatory approval and is expected to be completed in 2015, "takes our company to a new level in terms of global reach and market coverage."

Electrolux plans a rights issue corresponding to about 25 percent of the purchase after the acquisition is complete.

Headquartered in Louisville, Kentucky, GE Appliances' products include refrigerators, freezers, cooking products, washers and dryers and air conditioners. The division, which has 12,000 workers at nine factories, earned $381 million on $8.3 billion in sales last year, for a profit margin of 4.6 percent.

"GE Appliances' people, valuable home appliances brand, products, distribution, and service capabilities make it a perfect fit with Electrolux and its goal of accelerating growth in the U.S.," GE Chief Executive Jeff Immelt said in a joint statement from the two companies.

Other than its own brand, Electrolux sells under the Zanussi, AEG, Frigidaire and Eureka trademarks. In July it posted a second-quarter net loss of 92 million kronor ($13.5 million), citing large restructuring charges, but said demand in Europe and the United States was picking up.

Electrolux has more than 60,000 employees, including 10,000 in North America. Its North American operations are headquartered in Charlotte, North Carolin

 

[washman]

GE.......we bring good things to life

Meh.............

If I were anyone in a GE factory, anywhere in the US, I'd be typing my resume right now.

I predict that GE "branded" appliances will be Electrolux clones. Part of that "synergy" savings of $300 million that the Electrolux corporate flak spoke of.

Look for more production to head south of the border, just like in Greenville Mich, when the old Gibson factory was shuttered. Naturally and as in the past, you and I will not see the benefit of cheap slave labor in the retail price of said product.

And of course, like the the airline business, we're faced with fewer consumer choices. Thus you basically have the Whirltag family of brands vs the Electrolux family of brands. Great huh?

 

[daveamkrayoguy]

"We Done Gave Her Away!!!!"

As H. Ross Perot stated in his 1992 book, NOT FOR SALE AT ANY PRICE: "We play around with money"...

 

Quite an example of that philosophy, and more than 20-years-later since it came out, and when he'd speculated our problems w/ the US vs. Foreign Markets we were selling to, at the time of his (Ahem!) Presidential election campaign...

 

The news was just days ago...  The deal seems to have been made overnight!

 

 

-- Dave

 

[alr2903]

I hope folks in Louisville,  get their financial house in order quickly.  Anything could happen. I remember the families on TV  speaking from Newton Iowa and Herrin Illinois. 

 

[arbilab]

'... whirltag v electrosux...'

Both have been dancing on the border of craphood within recent memory. Within same timespan, GE sells legacy parts for the original purchase price of the whole damn appliance. Like Elliot Gould said to his seer in Ocean's Twelve, "This? You couldn't see This?"

Blahblahblah, 'family livelihoods'. Cheese with that whine? Profits from SALES are so 20th century. GE makes its REAL money financing products starting at $1M, not $0.5K. So they're systematically deleting things that cost less than multiples of $1M. See Elliot Gould above. (And see the movie, it's quite clever.)

If this sounds bitter, it bloody well is. Dell did it to me in 2001. And you're gawdam right I resent the hell out of it. Under conventional planning principles I did everything right. No debts and savings targeted around $1M.

Now I live in a subsidized retirement poorhouse. It's no consolation there are 50 million others, some not fortunate enough to qualify for retirement. They're just hung out to dry, while I can 'afford' shelter/food/utilities. This ain't what I "pledged allegiance" to for 12yrs back in the 50s. If you catch my drift.

(Sorry, that rant leans toward Tub Turns. But I kept the expletives to things you can *sometimes* say on cable.)

 

[washman]

arbilab , somewhere along the line the rules changed

Can't say exactly when but they did change nonetheless.

After all, why build a better mousetrap when you can do a leveraged buyout of the mousetrap company, sell off the bits and pieces and come out smelling like a rose?

So long as the basic business model includes some dribble about maximizing shareholder value (remember the CEO is a shareholder too), we certainly have not seen the last of things like this.

On a side note, anyone following the fast food workers protest and strikes? I find it interesting that some argue these are jobs for teenagers, or transition jobs or whatnot and thus should pay next to nothing. What these apologists for wall street seem to forget is thanks to the hollowing out of our industrial base, the outsourcing of tech and backoffice jobs, for a great many this IS the job to pay the bills. No longer is it something for sue and Tommy to do before they head off to college, for the 40 something displaced worker, that is all he has left.

 

[tolivac]

Fast food workers-If they get the 15 buck an hour pay raise-would you want to pay for the NEW price of a burger ,fries ,and shake to cover the doubled labor costs---probably not.and I can see automation taking over some of those jobs-so--there will only be ONE 15 buck worker and manager at the place while it operates.And I bet some franchise owners will throw in the towel and close their operation.But a good side of it-the workers may no longer need state or Federal job assistance.But at the same time these pay raises could DEVISTATE the food industries.We will have to pay more?How many folks will want that?

 

[mrb627]

And...

Get ready for a lot of high schoolers without jobs followed by an increase in crime/burglary.

Malcolm

 

[pierreandreply4]

i have a feeling that alot of pepole that used to buy ge

Hello to all aw members,

with said deal done i have a feeling alot of ge customers that buys the brand who will went to keep true ge appliance will be searching sites like craiglist kijji and swap shop and shop that sell used refurbish appliace for true ge filter flo dishwasher ect to name a few just to stay with true ge brand or have there actual machines repaired or restored. Pictured are up for a trip down memory lane credit to all aw members to whose pictures i am using