FIN630_8-2ShortPaper.docx - FIN630 8-2 Short Paper Overview...

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FIN63012/22/198-2 Short PaperOverviewThe case study reviews the company Electrolux and their acquisition of GE Appliances(GEA). General Electric (GE) “was a conglomerate—a portfolio of business spanning many different industries . . . in everything from turbine engines to financial services to appliances” (Moffett. 2016). GEA is comprised of appliances like refrigerators and freezers, dishwashers, washers, dryers, etc. However, this division of the company was “consistently one of GE’s least profitable businesses,” thus the company desired to sell it (Moffett. 2016). They originally valued the division at $8 billion and tried to sell it off in 2008, however because there were no takers, they decided to take the division off of the market and refocus on it for the time being. In 2014, GE decided to attempt to sell off the division again, but this time theyre-evaluated and “analysts estimated an eventual sale price of between $2.0 and $2.5 billion dollars” (Moffett. 2016).

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