CORRECTED-UPDATE 3-GE to sell appliances business to China's Haier for $5.4 bln

viernes 15 de enero de 2016 10:52 GYT

(Corrects paragraph 9 to say the DNB Bank analyst's comments were made to Reuters and are not from a research note)

By Ankit Ajmera

Jan 15 (Reuters) - General Electric Co said it would sell its appliance business to China's Haier Group for $5.4 billion in cash, another step in its push to sell its non-core assets and project itself as a technology company.

The deal comes weeks after GE walked away from a deal to sell the business to Sweden's Electrolux for $3.3 billion, following months of opposition from U.S. antitrust regulators.

GE said the deal values the appliance business at 10 times last 12 months earnings before interest, taxes, depreciation, and amortization (EBITDA). Whirlpool Corp is valued at 7.7 times.

GE shares fell 2.3 percent in premarket trading.

GE said earlier this week it would shift its headquarters to Boston, a move aimed at lowering its tax bill and tapping talent in city that is fast becoming a tech hub.

For Haier, the deal means ownership of a century-old appliance business that makes refrigerators, freezers, clothes washers and dryers across brands such as Monogram, Café, Profile and Artistry. The business trails only Whirlpool Corp in the U.S. white goods market and reported revenue of $5.9 billion last year.

The deal, Haier's biggest ever, will give a big boost to its U.S. business, which held less than 5 percent of the market last year.   Continuación...