GE has signed a definitive agreement to sell its Appliances business to Qingdao Haier for $5.4 billion. The transaction has been approved by the board of directors of GE and of Haier, and remains subject to customary closing conditions, including Haier shareholder approval, and regulatory approvals. The transaction is targeted to close in mid-2016.

As part of the transaction, GE has entered into a long-term agreement with Haier to continue use of the GE Appliances brand. Louisville will remain the headquarters for GE Appliances.

“We are pleased to be selling our Appliances business to Haier, which is committed to growing the business globally,” said GE chairman and CEO Jeff Immelt. “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.”

The transaction values GE Appliances at 10 times the last 12 months of earnings before interest, taxes, depreciation, and amortization.  The sale will generate an after-tax gain of approximately $0.20 per share at closing. GE expects to offset the gain with restructuring in 2016.  The company will provide more details on the gain and restructuring on its fourth-quarter earnings call on January 22, 2016.

Goldman Sachs provided financial advice to GE and Sidley Austin was GE’s legal advisor.