Bosch and German conglomerate Siemens AG (SIEGY: Quote) agreed that Robert Bosch GmbH will acquire Siemens’ 50 percent stake in the joint venture BSH Bosch und Siemens Hausgeräte GmbH or BSH. The purchase price will total 3 billion euros. In addition, Siemens and Bosch will each receive from BSH an additional distribution of 250 million euros before the transaction is completed.

The transaction has been approved by the Board of Management and Supervisory Board of Bosch and the Managing Board and Supervisory Board of Siemens.

The transaction, which still requires regulatory approval, will probably be completed in the first half of calendar year 2015. BSH will then become a wholly owned subsidiary of the Bosch Group.

As per the terms of the agreement, BSH will also be allowed to produce and market household appliances under the Siemens brand over the long term.

In 1967, Bosch and Siemens combined their activities in the area of household appliances to create the joint venture BSH.

New Miele Beats Energy Rating
With its new flagship model washing machine, internally identified as the W1 Prestige, Miele is promising that customers will gain a unique combination of energy efficiency, cleaning performance, and user convenience.

“This washing machine is likely to stand peerless in the marketplace,” said Executive Director and Miele Co-Proprietor Dr. Reinhard Zinkann at a press conference at the IFA trade show. 

The new washing machine from Miele tops the requirements for an A+++ energy efficiency rating by 40%, in a cycle lasting less than 3 hours. A rush cycle cleans a load in under an hour, with less energy efficiency but no compromises in cleanliness.

The wash spins at up to 1600rpm and has a 9kg maximum load capacity.

The unit also has an touch display, a patented SoftCare drum for gentle fabric care and a reduced need for ironing, and an EcoFeedback consumption indicator. Its TwinDos is said to be the world’s first integrated 2-phase dispensing system for liquid detergents and fabric conditioner. It also has a conventional detergent dispenser drawer.

A matching dryer is available that has an A+++ energy efficiency rating and 9 kg load capacity.

A bizarre spat has broken out between South Korean manufacturing giants Samsung and LG, with Samsung accusing its rival of damaging its goods.

Samsung says employees of LG Electronics, one a senior executive, were seen deliberately destroying some washing machines in stores in Germany.

Samsung says the vandalism took place earlier this month ahead of a major electronics trade fair in Berlin.

LG accepts two machines were damaged but said it was done accidentally.

It said the damage occurred because the model’s hinges were weak.

LG said its executives had been examining its rivals’ goods and it had offered to pay for four machines at one store, although only two were damaged by them during the inspection.

German police have already questioned those involved.

Damage

Samsung said in a statement: “It is very unfortunate that Samsung had to request that a high-ranking executive be investigated by the nation’s legal authorities, but this was inevitable, as we concluded that we had to get to the bottom of this incident.”

It has asked prosecutors in Seoul to investigate.

An LG spokeswoman told Reuters that Jo Seong-jin, head of the company’s home appliances division, was one of the people named in Samsung’s investigation request.

LG said in a statement: “If our company had an intention to destroy products of a certain company to tarnish the image of the product, it would be common sense to not have our executives directly carry out such acts.

“We hope that this is not an attempt to damage our reputation.”

The two companies are fierce rivals, competing in a number of different markets, including phones and televisions.

LG claims to be the world’s largest maker of washing machines, with Samsung the second largest.

In the past, LG and Samsung have confronted each other over smartphones, televisions, fridges and air-conditioners. Washing machines is a new front in the global battle.”

LEC
Product: TS55174WTD fridge freezer
In response to consumer demand, refrigeration specialist Lec has introduced a selection of 550mm models, including the TS55174WTD (pictured) – its first ever to include a water dispenser. Available in white, black and silver this A+ rated, 1.7m tall model offers a generous 177 litre net fridge capacity, three safety glass shelves and four spacious door storage compartments. The water reservoir is fitted inside the door to save on valuable shelf space.

http://www.lec.co.uk

Electrolux has confirmed that it is to buy GE Appliances for a cash consideration of $3.3 billion (£2bn).

In a statement issued by Electrolux, the company said that the fit between Electrolux and GE Appliances would create a strong platform for growth in the North American appliance market and enable the combined business to better serve North American consumers.

Commenting on the deal, Electrolux president and chief executive Keith McLoughlin said: “This is an historic moment and important strategic move for the Electrolux Group, which takes our company to a new level in terms of global reach and market coverage. GE’s premium, high-quality appliances complement our own iconic brands and will enhance our presence in North America.

“The acquisition, which is our largest ever, strengthens our commitment to the appliance business and also provides Electrolux with the scale and opportunity to accelerate our investments in innovation and global growth.”

GE chairman and chief executive Jeff Immelt added: “Electrolux is the right global business for our customers, consumers and employees. GE Appliances’ people, valuable home appliances brand, products, distribution, and service capabilities make it a perfect fit with Electrolux and its goal of accelerating growth in the US.”

Subject to regulatory approvals, the deal is expected to be be finalised during 2015. A rights issue [whereby existing shareholders will be able to purchase additional new shares in the company] corresponding to around 25 per cent of the consideration is planned following completion.

The acquisition will also include a 48 per cent share in Mexican appliance company Mabe, with which GE has operated a joint venture for the past 30 years. Mabe manufactures some of the GE product line-up.

In 2013, GE Appliances had sales of $5.7bn and profits (EBITDA) of £900m. Combined 2013 sales for GE and Electrolux were $22.5bn with profits (EBITDA) of $1.5bn. GE Appliances generates more than 90 per cent of its revenue in North America. It has its own distribution and logistics network and has nine factories with 12,000 employees.
 
Said Mr McLoughlin: “GE Appliances is a well-run operation with strong capabilities in key areas such as R&D, engineering, supply chain and customer service, and we look forward to joining forces with their team of talented and competent people.”

The acquisition is expected to products annual cost savings of around $300m. One-off costs of implementation and expenditure for the acquisition are expected to amount to around $370m.

Talking to ERT earlier this year about the possibility of a merger (see her blog), Euromonitor appliances analyst Cristina Baus said: “Electrolux has a wide geographical footprint that could serve to leverage the expansion of the GE brand, while at the same time gaining a stronger foothold in the US through GE’s strong domestic brand recognition.

“The US market represented 13 per cent of volume sales for Electrolux in 2013, and together with Latin America and eastern Europe, helped to offset the losses in its home market, western Europe. In the first six months of 2014, however, Electrolux reports sales remained unchanged in North America, despite a spike in the market.

“Acquiring GE would help Electrolux become the number one player in major appliances in the US, overtaking Whirlpool. Electrolux would also benefit from the $1 billion investment GE did in its US production plants, particularly in home laundry appliances, where GE has a definite upper hand over Electrolux.”

Braun is to relaunch in the UK with new hand blenders juicers and irons
Braun name is licenced to De Longhi

For a unique kind of home appliance that has a retro appeal, Smeg appliances offer a vintage feel with modern technology. Smeg aims to identify and reflect the defining characteristics of Italian design, such as inventive elegance, originality and product quality.

Smeg is an Italian home appliance manufacturer based in Guastalla, near Reggio Emilia in the north of the country. The international face of the Italian company is expressed via its 16 subsidiaries in Europe and the United States, two overseas offices—in Hong Kong and in Saudi Arabia—and last but not the least an extensive sales network that enable Smeg to offer appliances designed with know-how and ‘made-in-Italy’ style all around the world, from Asia to Europe, Africa to Australia.

Know-how, creativity and style are the qualities that spring from Smeg’s Italian identity and characterize the company’s commitment to bringing everyday objects to life. Of course, aesthetic reasons aside, Smeg’s identity is an expression of its actual Italian origins and the fact that the company is passionate about what it does.

Smeg appliances are thus snapshots of Italian style—from the retro ‘50s refrigerators to steel-only cookers—and are able to shape trends and tastes and establish a relationship with the user that goes beyond more practical concerns. With this philosophy in mind, the firm has embarked on projects with leading designers and architects and internal development programs, which assess current tastes and local trends.

The Smeg Group, thanks to a corporate culture which dictates that maximum emphasis be placed on product quality, technology and design, is consequently known all over the globe as on of the key representative of made-in-Italy standards.

Smeg’s iconic FAB range welcomes a new member to its revered family—the FAB5 mini fridge, stocked with loads of features and personality in an irresistible package.

Sporting the same curvaceous retro styling as its FAB fridge relatives, the FAB5 may be small but it is big on impact. Its neat stature of 730 mm matched with a width of 404 mm is the ideal chilled-out design piece for commercial spaces. Weighing in at only 17.5 kg and with a completely silent noise level, there’s no limit to its multipurpose character and movability: be it a hotel suite, an office space, for clients or in a shop, the FAB5 can go anywhere and complement myriad of settings, thanks to its size, style and hues of cream, black, red, orange or Union Jack.
The fridge’s features include an adjustable thermostat, two shelves which can be interchanged over five heights, a bottle holder and snack compartment in the door, an ice cube tray, internal LED lighting, easy-to-clean surfaces, a right-hand or left-hand hinged door with chrome handle and a 40L-net interval capacity.