G.E. Talks on Top Selling your business in Appliances

A G.E. worker performing tests on a refrigerator at a company plant in Louisville, Ky.

   General Electric again in discussions about a potential sale of its business appliances, secular division that gave birth to the washer-dryer and a toaster. 

One of the candidates is a Swedish appliance manufacturer Electrolux, which was confirmed on Thursday that they are in negotiations regarding the acquisition. 

Other, more unusual, the potential buyer is appropriately called Quirky, consumer product start-up based in New York. It is working with the private equity firm Blackstone Group, according to people with knowledge of the matter. 

Both groups of candidates are part of a wide range of potential new owners for GE appliances unit, one of the oldest in the conglomerate. 

The talks, at least the second time G.E. has held discussions to break the unit, having tried six years ago. Among them, the company negotiates with at the moment Asian appliance manufacturer Electrolux and Samsung and LG. But the discussion that collapsed during the financial crisis. 

For Electrolux, the acquisition will significantly increase its activity. It 'was one of the world's largest producer of household appliances and industrial equipment, has recorded a turnover of 109 billion Swedish kronor, or about $ 15.9 billion last year. But appliances and lighting division of GE alone generates $ 8.3 billion in revenue during the same period. 

Electrolux has attracted almost half of its sales in the United States, with kitchen appliances that make up 60 percent of sales. 

"It is no agreement was reached, and there is no guarantee that an agreement will be reached," the Swedish company said in a statement. 

More interesting than the applicant Quirky, start-up of five years that uses crowdsourcing to quickly generate ideas for products for the home. Then eve ideas, choosing to develop and usually some product design, prototyping and production set up. Products often get retail chains like Home Depot in three or four months. 

Elegant model, high-speed Quirky on the design and product development has attracted the attention of the traditional manufacturers - GE most of all. 

G.E. has invested $ 30 million Quirky. The companies are working together to develop different products, including so-called intelligent climate control, sensors monitor the activities of the family and the room temperature and automatically adjusts the settings. 

Quirky Revenue is on track to reach $ 100 million this year, the company said. He raised a total of $ 175 million euro, mostly from venture capital firm Andreessen Horowitz as a leader and Kleiner Perkins Caufield & Byers. 

Bloomberg News reported earlier talks on General Electric appliance business. 

This division dates back to the early days of General Electric and connections most consumers have more directly with GE 

Introducing the first electric toaster in 1905 and the first electric range, Hotpoint, in 1910, his first electric washing machines for the home introduced in 1930. 

Business tool has become less important for GE in recent years, especially as the financial arm of the company diminished it. Tools and lighting units accounted for only about 6 percent of the company revenue $ 146 billion in 2013. 

Since the financial crisis in the fall of 2008, Jeffrey R. Immelt, CEO of GE, has tried to bring attention to the core business of the company industry. 

The company has sold or spun off several non-core businesses in recent years, including agreeing to sell NBCUniversal, television and media empire, Comcast, the largest cable operator in the United States, for about $ 30 billion in 2009. 

In July, G.E. spinning the North American retail finance arm, now known as the Financial synchrony, in public IPO.

0 Response to "G.E. Talks on Top Selling your business in Appliances"

Post a Comment

NO SPAM dan SARA