Electrolux

Electrolux to Buy GE Appliances Business for $3.3 Billion
It seems that Electrolux has his eyes on GE
now recently i heard some plant where closing (lux that is ,now bear whit me i didn't hear all the story but being a lux fan im happy about this )>>>>>>>>

The deal is the largest ever by Electrolux and comes amid consolidation among makers of stoves, dishwashers and washing machines. Whirlpool agreed to pay more than $1 billion this summer to acquire a majority stake in Italian company Indesit Co. , a purchase that would roughly double Whirlpool's business in Europe.

Electrolux shares surged 5.1% in Stockholm on the deal news.The Swedish company's chief executive, Keith McLoughlin, said in an interview that a chief attraction of the deal is GE's top position selling to home builders in the U.S. Electrolux, with $15.9 billion in 2013 revenue, has only a small share of that market and has been trying to expand it.

Another advantage, he said, is that GE has the capacity to make washing machines in the U.S. Electrolux has been importing some machines from Mexico that are subject to import duties of about 33%.

If the deal is completed, he said, Electrolux's U.S. market share is likely to rise to about 37% from a bit over 20%, including appliances made for Sears Holdings Corp. SHLD -0.27% under the Kenmore brand. That would nearly match Whirlpool's U.S. share at a time that it has become tougher for manufacturers to focus on a single continent. Excluding the Kenmore brand, Electrolux and GE had a combined U.S. market share in dollar terms of about 24% for the 12 months through June, according to Stevenson Co.'s TraQline service.

Market Talk
Electrolux Deal May Widen Its Brazil Market Electrolux's planned purchase of GE's appliance business should help the Swedish company gain market share in Brazil, says David MacGregor of Longbow Securities. In Brazil, Electrolux has lost share to Whirlpool (WHR) recently as strapped consumers have gone down market. Whirlpool could reach those consumers with its Brastemp and Consul brands, but Electrolux was mainly in the premium market. The GE purchase would give Electrolux the lower-priced Continental and Dako brands of GE's Mexican affiliate Mabe. (bob.hagerty@wsj.com)

Electrolux's GE Deal Gives "Great Market Position" in North America Electrolux's acquisition of General Electric's appliances business gives the Swedish company "a great market position in North America" with a combined market share of 40%, on par with that of U.S's largest appliance maker Whirlpool, says Johan Eliason, analyst at Kepler Cheuvreux. He also notes that the appliance industry is becoming more and more about economies of scale. "New features need to be introduced at an ever increasing pace and this acquisition means Electrolux's R&D investments can be applied to larger volumes," he says. Shares trade up 6.7% at SEK200. (christina.zander@wsj.com)

Market Talk is a stream of real-time news and market analysis that's available on Dow Jones Newswires

"It's more of a global competitive game now," Mr. McLoughlin said. Electrolux and Whirlpool would be about equal in terms of global sales in dollar terms, he said.

Whirlpool declined to comment.

Electrolux will retain the GE brand, positioning it as a midrange brand between the mass-market Frigidaire and high-end Electrolux models.

For its part, GE gets to exit a business that it has been eager to sell for several years as the conglomerate focuses more tightly on heavy-industry businesses such as jet engines, power turbines and oil-sector services.

The transaction is expected to close next year, the companies said Monday.

Electrolux expects to extract $300 million in annual cost savings from combining the businesses.

The company will also gain economies of scale. "New features need to be introduced at an ever increasing pace, and this acquisition means Electrolux's R&D investments can be applied to larger volumes," Kepler Cheuvreux analyst Johan Eliason said.

More than 30% of Electrolux's sales come from selling major appliances in North America. Its brands include Frigidaire and AEG. Bloomberg News
GE's century-old appliance business generated earnings before interest, taxes, depreciation and amortization of $390 million on revenue of $5.7 billion last year. It has roughly 12,000 employees, with about half employed at Appliance Park in Louisville, Ky.

Assuming the deal had been in place last year, North American sales of heavy appliances such as ovens and washing machines would have amounted to 47% of Electrolux's $22.5 billion in total sales, compared with 29% without the addition of the GE business, Electrolux said.

As part of the deal, Electrolux also acquires a 48.4% shareholding in the Mexican appliance company Mabe, which has a 30-year product-development and manufacturing joint venture with GE Appliances. That will give Electrolux access to Mabe's Continental and Dako brands, which could help it compete in Brazil, where it has lost market share to Whirlpool as strapped consumers have gone down market, said David MacGregor of Longbow Research.

"Electrolux will be a more vigorous competitor," he said.

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Post# 297672 9/9/2014 at 07:00 (3,510 days old) by compactc9guy (Bathurst NB)
Checkrate/Likes Electrolux to Buy GE Appliances Business for $3.3 Billion It seems that Electrolux has his eyes on GE now recently i heard some plant where closing (lux that is ,now bear whit me i didn't hear all the story but being a lux fan im happy about this )>>>>>>>> The deal is the largest ever by Electrolux and comes amid consolidation among makers of stoves, dishwashers and washing machines. Whirlpool agreed to pay more than $1 billion this summer to acquire a majority stake in Italian company Indesit Co. , a purchase that would roughly double Whirlpool's business in Europe. Electrolux shares surged 5.1% in Stockholm on the deal news.The Swedish company's chief executive, Keith McLoughlin, said in an interview that a chief attraction of the deal is GE's top position selling to home builders in the U.S. Electrolux, with $15.9 billion in 2013 revenue, has only a small share of that market and has been trying to expand it. Another advantage, he said, is that GE has the capacity to make washing machines in the U.S. Electrolux has been importing some machines from Mexico that are subject to import duties of about 33%. If the deal is completed, he said, Electrolux's U.S. market share is likely to rise to about 37% from a bit over 20%, including appliances made for Sears Holdings Corp. SHLD -0.27% under the Kenmore brand. That would nearly match Whirlpool's U.S. share at a time that it has become tougher for manufacturers to focus on a single continent. Excluding the Kenmore brand, Electrolux and GE had a combined U.S. market share in dollar terms of about 24% for the 12 months through June, according to Stevenson Co.'s TraQline service. Market Talk Electrolux Deal May Widen Its Brazil Market Electrolux's planned purchase of GE's appliance business should help the Swedish company gain market share in Brazil, says David MacGregor of Longbow Securities. In Brazil, Electrolux has lost share to Whirlpool (WHR) recently as strapped consumers have gone down market. Whirlpool could reach those consumers with its Brastemp and Consul brands, but Electrolux was mainly in the premium market. The GE purchase would give Electrolux the lower-priced Continental and Dako brands of GE's Mexican affiliate Mabe. (bob.hagerty@wsj.com) Electrolux's GE Deal Gives "Great Market Position" in North America Electrolux's acquisition of General Electric's appliances business gives the Swedish company "a great market position in North America" with a combined market share of 40%, on par with that of U.S's largest appliance maker Whirlpool, says Johan Eliason, analyst at Kepler Cheuvreux. He also notes that the appliance industry is becoming more and more about economies of scale. "New features need to be introduced at an ever increasing pace and this acquisition means Electrolux's R&D investments can be applied to larger volumes," he says. Shares trade up 6.7% at SEK200. (christina.zander@wsj.com) Market Talk is a stream of real-time news and market analysis that's available on Dow Jones Newswires "It's more of a global competitive game now," Mr. McLoughlin said. Electrolux and Whirlpool would be about equal in terms of global sales in dollar terms, he said. Whirlpool declined to comment. Electrolux will retain the GE brand, positioning it as a midrange brand between the mass-market Frigidaire and high-end Electrolux models. For its part, GE gets to exit a business that it has been eager to sell for several years as the conglomerate focuses more tightly on heavy-industry businesses such as jet engines, power turbines and oil-sector services. The transaction is expected to close next year, the companies said Monday. Electrolux expects to extract $300 million in annual cost savings from combining the businesses. The company will also gain economies of scale. "New features need to be introduced at an ever increasing pace, and this acquisition means Electrolux's R&D investments can be applied to larger volumes," Kepler Cheuvreux analyst Johan Eliason said. More than 30% of Electrolux's sales come from selling major appliances in North America. Its brands include Frigidaire and AEG. Bloomberg News GE's century-old appliance business generated earnings before interest, taxes, depreciation and amortization of $390 million on revenue of $5.7 billion last year. It has roughly 12,000 employees, with about half employed at Appliance Park in Louisville, Ky. Assuming the deal had been in place last year, North American sales of heavy appliances such as ovens and washing machines would have amounted to 47% of Electrolux's $22.5 billion in total sales, compared with 29% without the addition of the GE business, Electrolux said. As part of the deal, Electrolux also acquires a 48.4% shareholding in the Mexican appliance company Mabe, which has a 30-year product-development and manufacturing joint venture with GE Appliances. That will give Electrolux access to Mabe's Continental and Dako brands, which could help it compete in Brazil, where it has lost market share to Whirlpool as strapped consumers have gone down market, said David MacGregor of Longbow Research. "Electrolux will be a more vigorous competitor," he said. CLICK HERE TO GO TO compactc9guy's LINK

Post# 297673 , Reply# 1 9/9/2014 at 07:13 (3,510 days old) by DesertTortoise ()
Checkrate/Likes There are no significant import duties on major appliances manufactured in Mexico and sold in the US. I don't know where Bloomberg gets their information from. A lot of Whirlpool, Samsung and Panasonic products are assembled in Mexico for this very reason.