Electrolux to Divest Eureka Brand, Focus on Strongest U.S. Small Appliances Categories

STOCKHOLM–(BUSINESS WIRE)–The Electrolux Group (STO:ELUXA) (STO:ELUXB) has made a strategic
decision to focus its North American Small Appliances business on its
strongest categories, as part of a process to improve the global
competitiveness of the business area. In line with this decision,
Electrolux has agreed to divest its North American vacuum cleaner brand
Eureka to Midea Group Co., Ltd.

“This move allows us to focus on our most profitable categories in the
U.S.,” said Ola Nilsson, Head of Electrolux Small Appliances. “It also
allows us to invest in innovation and strategic growth. The U.S. vacuum
cleaner market remains important for Electrolux.”

The agreement includes most of the assets related to the Eureka brand.
Sales of products under the Eureka brand amounted to approximately USD
60 million over the past 12 months. The transaction is not expected to
result in any material net one-off effects on the Group income
statement. The transaction is expected to close before year end.

About Midea

Midea, a Fortune 500 company, is a leading global manufacturer of
consumer appliances and heating, ventilation and air-conditioning (HVAC)
systems with $21 billion in revenues, over 100,000 employees worldwide,
26 manufacturing locations globally, and wide-ranging strategic
partnerships around the world.

About Electrolux

Electrolux is a global leader in home appliances and appliances for
professional use, based on deep consumer insight. We offer thoughtfully
designed, innovative and sustainable solutions, developed in close
collaboration with professional users. The products include
refrigerators, ovens, cookers, hobs, dishwashers, washing machines,
vacuum cleaners, air conditioners and small domestic appliances. Under
esteemed brands including Electrolux, AEG, Zanussi, Frigidaire and
Electrolux Grand Cuisine, the Group sells more than 60 million products
to customers in more than 150 markets every year. In 2015, Electrolux
had sales of SEK 124 billion and 58,000 employees. For more information
go to www.electroluxgroup.com

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Contacts

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