Electrolux Spinning Off Laundry Biz as Public Company
CHARLOTTE, N.C. — Electrolux Professional, the professional laundry and professional kitchen equipment division of Electrolux, reports it has begun the process to become a stand-alone public company in 2020.
The Electrolux Board of Directors has initiated work intending to propose that a shareholders meeting decides to split the AB Electrolux group into two listed companies: “Electrolux” for household appliances and “Electrolux Professional” for professional appliances, and to distribute Electrolux Professional to AB Electrolux shareholders in 2020.
The Board believes such a split has the potential “to create substantial shareholder value over time, given that the two businesses have different end markets, customers and success drivers.”
Electrolux Professional provides food service, beverage and laundry solutions to a wide range of customers, from restaurants and hotels to healthcare and other service facilities.
“Electrolux Professional is the only supplier in the professional appliances space with a full and integrated offer of solutions under one brand,” says Staffan Bohman, board chairman of AB Electrolux. “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.”
New York-based Laundrylux is the sole distributor of Electrolux Professional laundry products in North America.
“Consistent with our announced strategy to catalyze consolidation of the professional laundry industry in North America and worldwide, Electrolux Professional as a public company will have a traded stock to fund acquisitions,” says Neal Milch, executive chairman of Laundrylux. “The public listing of Professional in 2020 is consistent with Laundrylux’s liquidity pathway and our strategic cooperation.”
“Electrolux Professional is a world leader in two distinct platforms, commercial laundry and kitchen equipment, with world-class manufacturing, R&D, distribution, and brands,” adds Laundrylux CEO John Sabino. “Combined with Laundrylux’s North American market strength, Laundrylux Financial Services, and our own R&D capabilities, the stage is set for accelerating global growth.”