Electrolux is selling its Eureka floor care brand to Midea.
The Electrolux Group said it has made a strategic decision to focus its North American small appliances business on its strongest categories, and as a result has agreed to divest its North American vacuum cleaner brand, Eureka, to Midea Group. Terms of the pending transaction were not disclosed.
“This move allows us to focus on our most profitable categories in the U.S.,” said Ola Nilsson, head of Electrolux small appliances. “It also allows us to invest in innovation and strategic growth. The U.S. vacuum cleaner market remains important for Electrolux.”
The agreement includes most of the assets related to the Eureka brand, the company said. Sales of products under the Eureka brand amounted to approximately $60 million over the past 12 months, according to the company. The transaction is expected to close before the end of the year.