Electrolux Group’s Memphis manufacturing facility divestment deal fails to close as buyer defaults

Electrolux Group’s Memphis manufacturing facility divestment deal fails to close as buyer defaults

(IN BRIEF) Electrolux has announced that the divestment of its Memphis manufacturing facility in Tennessee, USA, will not be completed as intended. The buyer failed to close the deal, and the company will now seek an alternative buyer. The agreement to divest the Memphis facility for a cash consideration of $82.5m was terminated due to the intended buyer’s defaulting on its obligations. The facility ceased production on June 30, 2022, and operations have been relocated to the new facility in Springfield, Tennessee.

(PRESS RELEASE) STOCKHOLM, 12-Apr-2023 — /EuropaWire/ — The divestment of the Electrolux Group manufacturing facility in Memphis, Tennessee, USA, will not be completed as expected since the intended buyer has failed to proceed to closing. Electrolux Group will now seek an alternative buyer.

As earlier communicated, completion of the divestment of the facility was contingent on various factors. The intended buyer has defaulted on its obligations and the agreement is therefore terminated.

In the now terminated contract, communicated on October 12 and December 19, 2022, Electrolux Group had agreed to divest the Memphis facility for a cash consideration of USD 82.5m (approx. SEK 930m). Production in Memphis stopped on June 30, 2022, and the operations have been transferred to the new facility in Springfield, Tennessee.

This is information that AB Electrolux is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 11-04-2023 08:15 CET.

Electrolux Group

Electrolux Group is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent taste, care and wellbeing experiences for millions of people, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our group of leading appliance brands, including Electrolux, AEG and Frigidaire, we sell approximately 60 million household products in around 120 markets every year. In 2022 Electrolux Group had sales of SEK 135 billion and employed 51,000 people around the world.

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Electrolux Group Press Hotline
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SOURCE: Electrolux