The Strategist

Electrolux ponders selling Zanussi brand in the coming years

07/21/2023 - 09:30

The Swedish manufacturer does not regard Zanussi as a core asset anymore.

In the upcoming years, Swedish consumer electronics manufacturer Electrolux may divest the Italian Zanussi brand from its portfolio since the company no longer views it as a key asset.

In a statement released on Thursday, the business said that Electrolux Group "has started preparations for the potential sale of Zanussi and other non-core brands in the perspective of the coming years" as part of its efforts to sharpen its strategic focus.

At the current exchange rate, sale of the non-core assets, which include production facilities in Egypt and South Africa with the Zanussi brand, would bring in about SEK10 billion ($971 million) for the business. The decision will also "contribute to profit growth in selected appliance categories in the medium and premium segments."

The business previously reported a net loss of SEK648m ($62.9m) for the second quarter of 2023. The majority of this sum, SEK 643 million, had to be paid by the corporation to resolve antitrust claims in France.