(ELUX) The Electrolux Group has signed a Heads of Agreement with Email Ltd. to acquire the Major Appliances Business of Email Ltd., Australia’s leading producer of household appliances.
The purchase price will be approximately AUD 485 million (approx. SEK 2.5 billion), subject to adjustment depending on the net asset value on the closing date. The purchase is conditional upon the success of Smorgon Distribution Limited’s takeover bid for Email.
Email’s Major Appliances Business includes the manufacture, distribution, sale, marketing and servicing of white-goods in Australia and New Zealand (such as refrigerators, freezers, cookers, washing machines, dryers, dishwashers), the manufacture of white-goods components, as well as import and export of white-goods into and from Australia.
In the fiscal year ending March 31, 2000, sales of the Major Appliances Business were AUD 919 million and the company held a market share of approximately 60% in the Australian market. The operating profit was AUD 55.2 million, which corresponds to an operating margin of 6%. The company had 4,800 employees in Australia and New Zealand.
“An acquisition of Email’s Major Appliance Business would support the Electrolux Group’s strategy to grow in our core areas,” says Michael Treschow, President and CEO of the Electrolux Group. “Email is a prominent company with which we have had a long-term relationship, and its household appliances operations will be an important part in fulfilling our global strategy. Through this acquisition, Electrolux will be able to considerably strengthen the Group’s position in Australia and New Zealand and our position as the world’s number one choice.”
The purchase price will be approximately AUD 485 million (approx. SEK 2.5 billion), subject to adjustment depending on the net asset value on the closing date. The purchase is conditional upon the success of Smorgon Distribution Limited’s takeover bid for Email.
Email’s Major Appliances Business includes the manufacture, distribution, sale, marketing and servicing of white-goods in Australia and New Zealand (such as refrigerators, freezers, cookers, washing machines, dryers, dishwashers), the manufacture of white-goods components, as well as import and export of white-goods into and from Australia.
In the fiscal year ending March 31, 2000, sales of the Major Appliances Business were AUD 919 million and the company held a market share of approximately 60% in the Australian market. The operating profit was AUD 55.2 million, which corresponds to an operating margin of 6%. The company had 4,800 employees in Australia and New Zealand.
“An acquisition of Email’s Major Appliance Business would support the Electrolux Group’s strategy to grow in our core areas,” says Michael Treschow, President and CEO of the Electrolux Group. “Email is a prominent company with which we have had a long-term relationship, and its household appliances operations will be an important part in fulfilling our global strategy. Through this acquisition, Electrolux will be able to considerably strengthen the Group’s position in Australia and New Zealand and our position as the world’s number one choice.”
For further information contact:
SVP Johan Bygge, +46 70 594 73 48
