Electrolux Agrees to Pay $175MM Break-Up Fee to GE



Electrolux announced measures to structurally reduce costs within the business area small appliances. Operations continue to be negatively impacted by reduced volumes in several key markets, as well as unfavorable currency movements.

As announced on December 7, 2015, Electrolux planned acquisition of GE Appliances will not be completed as General Electric has terminated the agreement and requested pay-out of the termination fee of $175 million.

In accordance with the terms of the transaction agreement, Electrolux will pay the termination fee of $175 million to General Electric. The company said transaction and integration costs are expected to be approximately SEK 175 million ($20.6 million) for the fourth quarter 2015. In addition, the finance net for the fourth quarter will be impacted by costs arising from the bridge facility of approximately SEK 225 million ($26.4 million).

Measures to restore profitability are now being taken, including staff reductions and downsizing of activities, mainly in the U.S., Sweden and China. Consultations have been initiated with the Swedish Unions.


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