General Electric is reportedly nearing a more than $2.5 billion deal to sell its appliance business to Sweden’s Electrolux AB, a division the conglomerate has attempted to sell in the past.
GE last month confirmed it was reviewing strategic options for the business, and at the time said it was in talks with Electrolux and other parties. Reuters on Thursday reported those talks have since progressed to the point where the companies are hammering out final terms of the deal and could announce an agreement as soon as next week, according to people familiar with the matter.
Electrolux, the second-largest home appliance maker after Whirlpool (WHR), would gain significant reach in North America if the deal were to occur.
At stake is GE’s (GE) well-known appliance business that includes refrigerators, freezers, dishwashers, air conditioners and washer and dryers, among other appliances. Sales from GE’s appliances, along with lighting products, totaled $8.3 billion in 2013 and climbed 5% from the prior year, mostly due to higher volume for appliances.
The move to potentially exit the appliances business comes as GE’s CEO Jeffrey Immelt focuses industrial operations. Among the major asset moves GE has made recently include a planned $17 billion acquisition of French firm Alstom’s power and grid business and the 2013 sale of a remaining stake in NBCUniversal’s joint venture for $18.1 billion.
