1st Ld-Writethru: China's Haier buys GE Appliances

Chinese home appliance giant Haier has agreed to buy the appliances business of U.S. conglomerate GE for 5.4 billion U.S. dollars, Haier said on Friday.

The transaction values GE Appliances at 10 times the last 12 months of earnings before interest, taxes, depreciation and amortization.

GE retains the long-term right to use the GE Appliances brand under the deal. Louisville will remain the headquarters of GE Appliances, according to a GE press release.

"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."

In its press release, Haier promised to continue investment in the United States. "There will be no closures of facilities or loss of jobs because of this transaction," it said.

Haier is one of the world's largest home appliance manufacturers. According to a 2014 survey by Euromonitor, it accounts for over 10 percent of worldwide home appliance sales.

While Haier's market share in the United States is relatively limited, GE Appliances enjoys considerable popularity there with nine plants in five states and first-class logistics and distribution networks.

The deal has been approved by the boards of the two companies, but is awaiting approval from government regulators and Haier's shareholders. Endi