GE Sells Electric Appliance Arm to Electrolux for $3.3 Billion

General Electric, the multinational conglomerate, announced Monday that it has agreed to sell its electric appliance business to the Swedish electronics giant Electrolux for $3.3 billion.

GE's decision to sell the appliance arm is a result of its aim to streamline its business portfolio and focus on infrastructure and technology. The deal was apparently approved by the boards of both the companies.

The deal reportedly closed at about $800 million more than the anticipated price and is, however, subject to regulatory approval and will be completed by 2015. GE will continue using its appliance arm from Electrolux as a part of the deal.

"This transaction is consistent with our strategy to be the world's best infrastructure and technology company," Jeff Immelt, chairman and CEO of GE said in a statement.

"We are creating a new type of industrial company, one with a balanced, competitively positioned portfolio of infrastructure businesses with strong advantages in technology, growth markets, driving customer outcomes, and a culture of simplification."

Immelt added that Electrolux was the right company that would control GE's appliance business to the best of the consumers, customers and employees' benefit.

"Like GE Appliances, Electrolux has a nearly 100-year history in home appliances and they share the same principles of quality, innovation and customer value as GE. They are committed to supporting the growth of GE Appliances and value the GE Appliances team and its capabilities."

Electrolux also lauded GE's R&D, engineering, supply chain and customer service.

"GE's premium, high-quality appliances complement our own iconic brands and will enhance our presence in North America," Keith McLoughlin, President and CEO of Electrolux added in a separate statement.

"The acquisition, which is our largest ever, strengthens our commitment to the appliance business and also provides Electrolux with the scale and opportunity to accelerate our investments in innovation and global growth," McLoughlin added.

A combination of the two companies would create an electronic giant that would be well equipped to fight off competition and McLoughlin acknowledged that fact.

"The appliance industry is a large, growing global business that's not overly capital intensive. However, it is competitively intense," McLoughlin said.

Experts also think that the two companies are a perfect strategic fit.

"I think there is a good synergy that could happen in this case. I would say that large cooking appliance is seeing a growth in the home appliance market. Capacity from GE appliances would help Electrolux," Dinesh Kithany, senior analyst for home appliances at HIS told USA Today.