Electrolux has found a buyer for its Memphis factory
Electrolux Group has agreed to divest its manufacturing facility in Memphis, Tennessee, USA to a US-based investment company for a cash consideration of USD 61 million
The Swedish white goods manufacturer had previously entered into an agreement to divest the factory with another buyer which was not completed. The new agreement includes a due diligence period before the closing of the transaction, during which the buyer can terminate the contract. The agreed purchase price is USD 61 million, approximately SEK 675 million.
Electrolux is expecting a gain of USD 50 million from the divestment to be recorded as a non-recurring item, positively impacting the operating income of its North American business area. Closing is expected to occur during the fourth quarter of 2023.
The divestment is part of the group's previously announced actions to divest non-core assets with a total potential value of approximately SEK 10 billion (USD 896.4 million).
Electrolux stopped production in Memphis on June 30, 2022, and the operations have been transferred to the new facility in Springfield, Tennessee.