CHARLOTTE, N.C. — AB Electrolux is preparing for the separation of its professional-products business area from the group. The Electrolux board of directors has initiated work intending to propose that a shareholders meeting decides to split the group into two listed companies — Electrolux for household appliances and Electrolux Professional for professional appliances — and to distribute Electrolux Professional to the shareholders of AB Electrolux in 2020.
The Electrolux board of directors believes the split has the potential to create substantial shareholder value over time. A split will enable both companies to focus on their respective opportunities to drive profitable growth, with distinct strategies for innovation and customer focus, as well as a high level of capital efficiency. The separation costs are expected to be relatively low.
“Electrolux Professional is the only supplier in the professional-appliances space with a full and integrated offer of solutions under one brand. As such, it has significant potential for long-term value creation as an agile stand-alone company, which can pursue growth through market consolidation and innovation,” says Staffan Bohman, chairman of the board of directors of AB Electrolux. “Electrolux believes its core consumer business also stands to benefit, both in terms of growth and margins from a sharpened focus on consumer-experience innovation, the aftermarket and emerging markets. Electrolux financial targets will remain unchanged following a separation of Electrolux Professional.”
The preparations have been initiated and the board intends to present a proposal for the distribution and listing of Electrolux Professional in a shareholders meeting. If the shareholders decide in favour, AB Electrolux shareholders will receive shares in Electrolux Professional in proportion to their shareholding in AB Electrolux.
The intention is to list Electrolux Professional on Nasdaq Stockholm during the first half of 2020. The board expects to provide an update on the preparations and a more detailed timeline around mid-year 2019.