Electrolux divests the facility in Memphis

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Electrolux Group will divest its manufacturing facility in Memphis, Tennessee, USA to a US-based investment company for a cash consideration of 61 million dollar. The agreed divestment follows a previous agreement with another buyer which was not completed.

The agreement includes a due diligence period before closing of the transaction, during which the buyer can terminate the contract. The approximate gain of 50 million dollar from the divestment will be recorded as a non-recurring item, positively impacting the operating income in business area North America, in connection with closing of the transaction.

According ti Electrolux, closing and the positive cash flow impact are expected to occur during the fourth quarter of 2023. The Group’s production in Memphis stopped on June 30, 2022, and the operations have been transferred to the new facility in Springfield, Tennessee.