General Electric is to sell its home-appliances division to Swedish white-goods group Electrolux for $3.3 billion. The European group — number two in household appliances in the USA after North American manufacturer Whirlpool — will continue to use the GE Appliances brand.

Although the boards of directors of both companies have approved the deal, it is subject to ‘closing’ conditions and regulatory approvals.

GE chairman and CEO Jeff Immelt said: “This transaction is consistent with our strategy to be the world’s best infrastructure and technology company. We are creating a new type of industrial company — one with a balanced, competitively positioned portfolio of infrastructure businesses with strong advantages in technology, growth markets, driving customer outcomes and a culture of simplification.”

Electrolux president and CEO Keith McLoughlin said: “GE Appliances is a well-run operation with strong capabilities in key areas such as R&D, engineering, supply chain and customer service. We look forward to joining forces with its team of talented and competent people.”

The transaction values GE Appliances at eight-times its earnings during the last 12 months (before interest, taxes, depreciation and amortisation).