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Stockholm, October 2, 1998 Page 1 of
Electrolux sells Professional Cleaning Equipment product line
The Electrolux Group has today sold its Professional Cleaning product line, within the Professional Appliances business area, to the Danish, publicly held company, NKT Holding A/S. NKT Holding owns Nilfisk Advance, manufacturer of floor care equipment for professional use. The contract fulfills a letter of intent, which was signed and announced by the parties on July 28 of this year. The transaction is based on the opinion that there is a clear benefit to be gained by both parties in merging the businesses.
The capital gain from the sale is estimated to be around 200 million SEK. The preliminary purchase price is approximately 520 million SEK. The sale affects around 700 employees.
The Electrolux product line has manufacturing facilities in Åmål and Åtvidaberg, Sweden; Elkhart, Indiana, US; and Guardamiglio, Italy, outside Milan. The product line, which has annual sales of about 850 million SEK, manufactures vacuum cleaners, floor polishers, carpet extractors, sweepers, and cleaning chemicals for professional use. The products are sold in approximately 50 countries primarily under the brand names Euroclean, Kent, and Pulimat. The central vacuum cleaner business is not included in the sale.
Nilfisk Advance is strong in the markets of the US, and Western and Central Europe. Electrolux Professional Cleaning is strong in the markets of Scandinavia, Eastern Europe and the Far East. The newly created company is expected to be the market leader in several important markets.
Electrolux Professional Cleaning Equipment customers include cleaning companies, hotels, hospitals, schools, and other institutions. The Electrolux Group has 106,000 employees (1997) and sales of 113,000 million SEK (1997). Electrolux is one of the world’s leading producers of household appliances for indoor and outdoor use, and of corresponding products for professional users.
For further information
For further information, please contact Håkan Johansson, Senior Vice President Electrolux Professional Appliances, at +46-8-738-6000. For questions to Nilfisk Advance, contact Ole E. Jakobsen, President, +45-43 23 81 15. Electrolux Press Hotline: +46-8-657 65 07.