General Electric on Friday announced the sale of its appliances division to Chinese appliance manufacturer Haier.
Qingdao Haier Co. will pay $5.4 billion for the GE unit, which equates to 10 times the division's earnings over the past year before interest, taxes, depreciation and amortization.
The announcement came weeks after GE called of a proposed $3.3 billion sale of the unit to Swedish rival Electrolux, which drew concerns from federal antitrust regulators.
“GE Appliances is performing well and there was significant interest from potential buyers, helping drive a good deal which will benefit our investors, customers and employees," said GE CEO Jeff Immelt.
Haier is the world's largest home appliance maker but hopes to offer more high-end products. As part of the sale agreement, Haier will continue the use of the GE Appliances brand.
The unit will continue to be headquartered in Louisville, Kentucky, and officials said that the Haier is committed to investing in the U.S., including in manufacturing capacity.
In addition, the companies announced a long-term strategic partnership on industrial Internet, health care and advanced manufacturing issues. Haier will run GE’s Predix platform, while GE will bolster the efficiency of Haier plants.
“Haier and GE share the same vision and value innovation, customer service and developing products of the highest quality,” said Haier Group CEO Zhang Ruimin.