Umair Gaines
In 2016, a Facebook meme circulated claiming that General Electric, an American multinational conglomerate company, was sold to a Chinese company for $5.4 billion. This claim is false. While it is true that China's Haier purchased GE's appliance business for $5.4 billion, it did not buy the entire company. The acquisition of GE Appliances by Haier was finalised on June 6, 2016, and the subsidiary has been headquartered in Louisville, Kentucky, with the right to use the GE brand name until 2056.
| Characteristics | Values |
|---|---|
| Year of sale | 2016 |
| Date of sale | 6 June 2016 |
| Company sold to | Haier (Haier Smart Home Company) |
| Type of sale | Acquisition |
| Value of sale | $5.4 billion |
| Nature of sale | Sale of appliance business, not the entire company |
| Previous sale attempt | Electrolux, $3.3 billion |
| Brand name rights | Haier can use the GE brand name until 2056 |
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What You'll Learn
GE Appliances was sold to Haier in 2016
In 2015, General Electric decided to sell its appliance business. After a year of negotiation with Electrolux, a $3.3 billion offer was not accepted. Haier, a Chinese manufacturer of household goods, saw an opportunity to expand into international markets and acquired the century-old GE Appliances business for $5.4 billion.
On January 15, 2016, Haier announced the agreement to purchase GE Appliances, and the purchase was finalized on June 6, 2016. The acquisition included a board of directors with representatives from both Haier and GE Appliances, with the headquarters remaining in Louisville, Kentucky.
The sale of its appliance unit allowed GE to focus on its industrial business of jet engines and power tribunes, while Haier gained access to GE Appliances' talented team, state-of-the-art manufacturing facilities, and strong global customer base.
GE Chairman and CEO Jeff Immelt commented on the transaction, stating, "The sale of GE Appliances is another step in the company's portfolio transformation and its mission to become the world's leading Digital Industry company." He added that the sale would generate an after-tax gain of approximately $0.20 per share.
Zhang Ruimin, Chairman and CEO of Haier Group, expressed confidence in the partnership, stating, "Haier and GE share the same vision and value innovation, customer service, and developing products of the highest quality. Together, we will be able to embrace the digital era and offer customers the best possible choice and service now and in the future."
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Haier paid $5.4 billion for GE Appliances
In 2015, General Electric decided to sell its appliance business. After a year of negotiation with Electrolux, a $3.3 billion offer was not accepted. Haier, a Chinese manufacturer, saw an opportunity to establish itself in the US market. On January 15, 2016, Haier announced it had agreed to purchase GE's appliance division for $5.4 billion. The transaction was approved by the boards of directors of both companies and was finalised on June 6, 2016.
The sale of its appliance division allowed GE to focus on its more lucrative industrial manufacturing business, such as jet engines, industrial power systems, and locomotives. GE Appliances would remain headquartered in Louisville, Kentucky, and include a board of directors with representatives from both Haier and GE Appliances. The GE brand name would also continue to appear on appliances, and customers would still receive the same support.
GE Chairman and CEO Jeff Immelt said, "We are pleased to be selling our Appliances business to Haier, which is committed to growing the business globally. 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."
Zhang Ruimin, Chairman and CEO of Haier Group, commented, "GE Appliances has great employees and a strong global customer base and I am confident that, together, we will be able to embrace the digital era and offer customers the best possible choice and service now and in the future. Haier and GE share the same vision, and value innovation, customer service, and developing products of the highest quality. This transaction underscores Haier’s devotion to creating a global platform for innovation, which will benefit both Haier and GE Appliances and deliver enhanced value to all stakeholders."
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Haier can use the GE brand name until 2056
In 2016, General Electric sold its appliance division to the Chinese company Haier. The sale was worth $5.4 billion, although some sources state the figure was $5.6 billion. The deal allowed Haier to use the GE brand name until 2056.
The acquisition of GE Appliances by Qingdao Haier (now Haier Smart Home Company) was finalised on 6 June 2016. The agreement stated that GE Appliances would remain headquartered in Louisville, Kentucky, and include a board of directors with representatives from both Haier and GE Appliances.
Haier's acquisition of GE's appliance business gave the company a strong global customer base and a foothold in the US market. It also allowed Haier to manufacture its products in the United States, which it had been seeking to do since opening its first American factory in 2003.
Despite the sale, GE Appliances continues to manufacture most of its products for the American market in the USA. The brand has also invested heavily in its US operations, with a $3 billion investment announced in 2025, and a previous investment of $660 million made between 2018 and 2025.
Haier's right to use the GE brand name until 2056 means that the company can continue to sell appliances under the GE label for the next three decades. This includes appliances manufactured under several brands, such as GE, GE Profile, Café, Monogram, Haier, and Hotpoint.
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GE Appliances is headquartered in Louisville, Kentucky
In 2016, China's Haier purchased GE's appliance business for $5.4 billion. However, Haier did not buy the entire company, only the appliance unit. GE Appliances is headquartered in Louisville, Kentucky, and has a board of directors with representatives from both Haier and GE Appliances.
Louisville has been the headquarters of GE Appliances since the 1950s. In 1951, construction began on Appliance Park, a 750-acre manufacturing facility that now employs 8,100 people. The city was chosen due to its central location, which provided excellent infrastructure and distribution capabilities.
GE Appliances is a major appliance manufacturer in the United States, producing appliances under several brands, including GE, GE Profile, Café, Monogram, Haier, and Hotpoint. The company has invested heavily in its US facilities, including a $490 million investment in a laundry plant at its Louisville headquarters, which will create 800 new jobs. The company also operates manufacturing sites in Alabama, Georgia, Tennessee, and South Carolina.
GE Appliances is led by CEO Kevin Nolan, a Connecticut native and veteran of the company and the US appliance industry. Louisville is the company's primary innovation center, with over 1,600 engineers working on breakthrough technology. The company's global headquarters, Appliance Park, is a massive industrial park with its own zip code: 40225.
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The sale was announced on January 15, 2016
The sale of General Electric's appliance business to the Chinese company Haier was announced on January 15, 2016. The sale was finalised on June 6, 2016, for a total of $5.4 billion.
The sale of GE Appliances, an American home appliance manufacturer based in Louisville, Kentucky, marked an important step for Haier to establish a strong presence in the US market. The acquisition also provided Haier with state-of-the-art manufacturing facilities and a talented team.
Following the acquisition, Haier gained the right to use the GE brand name until 2056. GE Appliances continues to operate as an independent subsidiary of Haier, maintaining its headquarters in Louisville, Kentucky, and including a board of directors with representatives from both Haier and GE Appliances.
The announcement of the sale emphasised the shared vision and values between Haier and GE, with a focus on innovation, customer service, and the development of high-quality products. The partnership between the two companies also extended beyond the sale of the appliance business, as they agreed to explore strategic cooperation in areas such as industrial internet, healthcare, and advanced manufacturing.
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Frequently asked questions
No, the entire company was not sold to China. However, in 2016, General Electric sold its appliance business, GE Appliances, to the Chinese company Haier for $5.4 billion.
In 2015, General Electric initially decided to sell its appliance business to Electrolux for $3.3 billion, but the deal was blocked by the United States Department of Justice. Haier saw an opportunity to expand its presence in the US and offered $5.4 billion for the business.
Haier retained the headquarters of GE Appliances in Louisville, Kentucky, and implemented a board of directors with representatives from both Haier and GE Appliances. Haier also has the right to use the GE brand name until 2056.
