You may have heard of Electrolux, the company sells under brands such as Frigidaire, AEG and Zanussi as well as its own name. It is one of the world’s largest manufacturers of household appliances and is looking to acquire its conglomerate counterpart in the appliance business, General Electric.
A Swedish company, Electrolux, sells about 50 million products per year. Based in Stockholm, they sell home appliances in 150 markets. Approximately half their sales are from the United States, Brazil and the Americas. Acquiring General Electric would seem the most natural move for the thriving corporation and one that would benefit both parties considering the direction G.E. is headed.
Sales for Electrolux reached $15 billion, last year. The company also posted better quarterly profits than expected. To compare, G.E.’s revenue for 2013 in their appliance and lighting departments was $8.3 billion.
While G.E. and Electrolux are in talks, no deal is being levied at this juncture. G.E. was noted to have stated they are “evaluating a wide range of strategic options for our Appliances business, including discussions with Electrolux and other interested parities.” Those other interested parties being Quirky, who was reported by Bloomberg News to have said they would team up with private equity firms to acquire a majority stake in the company.
While General Electric became recognized for its appliances and became a household name for many in the U.S., in recent years the company has shifted focus to its core industrial businesses. A strategy sought after by G.E.’s Chief Executive Officer, Jeffrey R. Immelt, post the 2008 financial crisis that rocked the company hard.
The company’s most notable sales for their perimeter businesses include the NBCUniversal to Comcast for close to $30 billion. Then in June, they sold their Scandinavian consumer finance business to Spanish lender Banco Santander for $935.6 million.