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Electrolux Group initiates preparations to divest non-core assets with total potential value of SEK 10bn
"In the current challenging macro environment, focus and strategic portfolio management are more important than ever to be able to provide attractive and relevant consumer experience innovations under our strategic brands. Further structural simplification and complexity reductions are also being evaluated."
Group net sales in 2022 of the brands and water heater category to be divested were SEK 7.1bn , equivalent to approximately 5% of Group net sales. Of this, SEK 3.7bn relates to net sales in business area Europe , with a majority in UK and Benelux. Net sales of SEK 3.4bn relates to business area Asia-Pacific , Middle East and Africa , of which SEK 2.0bn in Egypt , and SEK 1.1bn in South Africa . The total number of employees in 2022 was 2,238 in Egypt and 856 in South Africa .
"Although the water heater businesses in Egypt and South Africa are profitable and the brands we are now looking at divesting are all well-known in their respective markets, these assets do not have sufficiently strong synergies with our core strategy to warrant the required focus and investment from Electrolux Group. Therefore, we believe in the opportunity for greater value creation and growth under different ownership. We will of course of evaluate the attractiveness of potential offers on a case-by-case basis," continues Jonas Samuelson.
The real estate divestments include among others, the previously announced production facilities in Memphis and Nyíregyháza, where production either has ceased or will be discontinued.
Société Générale acts as advisor in the brands and water heater category divestment processes.
This is information that AB Electrolux is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, on July 20, 2023 at 07.50 CET.
Sophie Arnius, Investor Relations, +46 70 590 80 72
Electrolux Group Press Hotline, +46 8 657 65 07
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