UPDATE 5-Electrolux takes on Whirlpool in U.S. with $3.3 bln GE Appliances buy

lunes 8 de septiembre de 2014 16:27 GYT

* Deal will double U.S. sales

* Values unit at 7.0-7.3 X 2014 EBITDA, ex synergies of $300 mln

* Electrolux to issue shares after deal completed

* Electrolux shares close up 5 pct (Adds comment from U.S. antitrust expert, paragraphs 8-9; updates stock prices, paragraph 17; adds Breakingivews link)

By Simon Johnson and Sven Nordenstam

STOCKHOLM, Sept 8 (Reuters) - Sweden's Electrolux AB said on Monday it would double U.S. sales by paying $3.3 billion in cash for General Electric Co's appliances business in its biggest ever deal, giving it the scale to go head-to-head with larger rival Whirlpool.

GE's century-old household appliance business, which had $5.7 billion in 2013 revenue, could help the Swedish company expand beyond its core European market, where growth has trailed that in North America.

Electrolux, the world's second-largest appliance maker by sales, will see its annual sales in North America more than double to over $10 billion, similar in size to Whirlpool's sales there. It also gets to keep the iconic GE Appliance brands.

The GE unit sells refrigerators, stoves, air conditioners and water heaters under the GE Monogram, GE Cafe and Hotpoint brands.   Continuación...