The Swedish group Electrolux acquires the home appliances division of General Electric for 3,3 billion dollars. Payment will be made in cash. "It is a historic moment for Electrolux - comments the president and CEO Keith McLoughlin - it is our largest acquisition ever and allows us to project our group to a new level in terms of market coverage".
In the press release, the Scandinavian group highlights that this operation will allow it to enter the North American market, where General Electric produces 90% of its revenues. The Swedes also let it be known that, once the transaction is completed, the group will proceed with a capital increase equal to approximately 25% of the acquisition.
In the last year of business, GE Elettrodomestici recorded revenues of 5,7 billion dollars with an Ebidta of 390 million and employing as many as 12 employees. The cost synergies resulting from this operation, Electrolux estimates, will reach 300 million dollars a year. At a pro-forma level, the numbers of the new group show 2013 revenues of 22,5 billion dollars and an Ebitda of 1,5 billion.
After the news spread, the Electrolux group opens the day on the stock market with a sharp rise. In just a few minutes, the Swedish stock jumped 8,16% to 202,80 kroner after hitting a high of 203,80 kroner.
