STOCKHOLM (AP) -- 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.<br />
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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.<br />
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Electrolux shares rose 7 percent to 200.50 kronor ($28.27) in early trading in Stockholm.<br />
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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.<br />
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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."<br />
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Electrolux plans a rights issue corresponding to about 25 percent of the purchase after the acquisition is complete.<br />
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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.<br />
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"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.<br />
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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.<br />
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Electrolux has more than 60,000 employees, including 10,000 in North America. Its North American operations are headquartered in Charlotte, North Carolina.
