General Electric has agreed to sell its century-old appliance business to China's Qingdao Haier for $5.4 billion in cash, a month after abandoning a deal with Sweden's Electrolux.
The $3.3 billion-proposed deal with Electrolux fell through following months of opposition from US competition regulators.
The deal, which will boost Haier's presence in the US, values the business at 10 times earnings before interest, taxes, depreciation and amortisation in the last year, GE said.
The deal is so far the biggest by Haier.
It will be subject to "customary regulatory filings in China and antitrust approvals in the US, Mexico and Argentina," said a person authorised to speak on behalf of Qingdao Haier.
The transaction is also to be approved by shareholders of Qingdao Haier and Haier Group, who jointly own 50.8% of the company, the person said.
Haier will continue to use the GE Appliances brand and retain its headquarters in Louisville, Kentucky along with its current management team, the companies said.
The deal includes GE Appliances' 48.4% stake in Mabe, a Mexican appliance company that has operated a joint venture and has had a sourcing relationship with GE Appliances for 28 years, Haier said.
Haier has a limited presence in the US, and the acquisition would be complementary to its existing range of products and operations.
GE said it expects the deal to generate an after-tax gain of about 20 cents per share upon closing, which will be offset by restructuring in 2016.
In 2014, GE Appliances had about $5.9 billion in revenue and $400m in EBITDA. The company employs about 12,000 workers globally, 96% of whom are based in the US.