GE to sell appliances business to Haier for $5.4 billion

Source: REUTERS

General Electric Co (GE.N) said on Friday it has agreed to sell its appliances business to Qingdao Haier Co Ltd (600690.SS) for $5.4 billion.
The deal, which will generate an after-tax gain of about 20 cents per share upon closing, values GE's appliances business at 10 times its earnings before interest, taxes, depreciation, and amortization in the last 12 months, the company said.

GE expects to offset the gain with restructuring in 2016.
Haier will to continue use of the GE Appliances brand and Louisville will remain the headquarters for the business.