General Electric plans to hand over operations of its Louisville-based appliance business to Swedish manufacturer Electrolux.
Though rumors suggested a more modest $1.5B sale was in the works, the early morning announcement Monday by GE marked easily the largest single purchase for European manufacturer, Electrolux - one that would make it one of the biggest appliance makers in the world.
Under the $3.3B deal, which will require regulatory approval, Electrolux will be able to continue using the GE brand name on appliances, but it’s unclear what the switch will mean for the company’s Louisville employees.
"It's really too early to tell on the number of jobs, but let me tell you that we didn't enter into this transaction lightly on that front. I believe that the steps we're taking offer the best long-term sustainability and competitiveness for our workers," GE president and CEO Chip Blankenship told reporters at a press conference Monday.
About 6,000 people are employed at Louisville's GE Appliance Park, but the division represents the third-smallest of the company’s seven industrial businesses in terms of revenue. GE has been seeking to narrow its industrial focus to products such as jet engines, oil-sector services, and turbines in recent years.
In a statement, Lousiville mayor Greg Fischer said the city will “work with Electrolux leadership to present the advantages and capabilities of our community to grow the combined GE Appliances - Electrolux platform even further.”
