Electrolux Divests Commercial Vacuum Cleaner Businesses

Electrolux has divested its U.S.-based commercial and central vacuum cleaner businesses in North America, including the brands Sanitaire and Beam. The company said the decision is in line with the strategy of its business area Home Care & SDA to focus on global brands and product categories.

The company has divested the commercial business, which provides professional customers in North America with a wide range of vacuum cleaners under the Sanitaire brand, to Bissell Inc. The global central vacuum cleaner business based in North America, which provides products under the Beam brand, has been sold to Nuera Air. The divested operations had combined revenues in 2017 of around $70 million, the company said.

As part of the process to improve its global competitiveness, Electrolux in late 2016 divested its main North American vacuum cleaner brand Eureka. The company is now shifting its North American headquarters to San Francisco, where an innovation hub was established last year. Working out of this hub, Electrolux earlier this year launched its robotic vacuum cleaner Pure i9.

“This is an important strategic step to support our profitable growth journey and further investments in innovation. We have an exciting pipeline of launches for this year and next, as we continue to build a responsive ecosystem of products for wellbeing in the home,” said Ola Nilsson, head of Electrolux Home Care & SDA. “Both Beam and Sanitaire are strong brands with excellent products that will have better opportunities to grow with their new owners.”

The transactions are not expected to result in any material changes to future earnings or net one-off effects on the group income statement, the company said.