Creating value through a sharper business focus and streamlined business
Electrolux has a long track record of value creation by successfully distributing operations to shareholders as new listed companies. In 1994, Autoliv was distributed to shareholders and listed on Nasdaq Stockholm and in 2006 the same was done with Husqvarna. Other listed companies on Nasdaq Stockholm that were previously part of the Electrolux Group include Dometic and Getinge.
Electrolux Professional – creating shareholder value as a stand-alone company
In January 2019, the Electrolux Board of Directors announced its intention to split the Group into two listed companies - ‘Electrolux’ for household appliances and ‘Electrolux Professional’ for professional appliances. This split has the potential to create substantial shareholder value over time, given that the two businesses have different markets, customers and success drivers. In February 2020, a shareholder meeting will decide on the Board’s proposal to distribute and list Electrolux Professional as a separate company. Following shareholder approval to distribute Electrolux Professional, the plan is to list the company on Nasdaq Stockholm on March 23, 2020.
There are three main reasons for separating the professional products business as a stand-alone company:
Sharper business focus
As separate companies, Electrolux and Electrolux Professional are better positioned to meet the different opportunities and demand drivers faced by the markets they are active in.
Greater agility to drive growth
Electrolux Professional is the only supplier in the professional appliances industry with a comprehensive and integrated offering of solutions under one brand. The business therefore has significant potential for long-term value creation as an agile stand-alone company, which can pursue growth through market consolidation and innovation.
Improved capital market access
An Electrolux Professional Products business with a separate balance sheet and capital market access will create opportunities to further accelerate growth in an industry that is consolidating rapidly. The listing would also provide opportunities for current and new investors to invest directly in Electrolux Professional.
Electrolux Professional is a leading provider of food services, beverage and laundry solutions to a wide range of customers, from restaurants and hotels to healthcare and other service facilities. It is a global business with operations in EMEA, North America and APAC. Its market is characterized by high demands on quality and efficient solutions, which requires offering a comprehensive range of best-in-class products, superior customer care, as well as innovation and investments in connectivity. In 2019, net sales were SEK 9bn with an operating margin of 10.7%.
More information is available on the Electrolux website.
Electrolux
Electrolux is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent taste, care and wellbeing experiences for millions of people around the world, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our brands, including Electrolux, AEG and Frigidaire, we sell approximately 60 million household products in approximately 120 markets every year. In 2019 Electrolux had sales of SEK 119 billion and employed 49,000 people around the world.
S:t Göransgatan 143
SE-105 45 Stockholm, Sweden