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Electrolux sells US vacuum cleaner brands

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Electrolux sells US vacuum cleaner brands

AB Electrolux said Aug. 8 that it divested its commercial and central vacuum cleaner businesses in North America, which include the brands Sanitaire and Beam.

Sanitaire was sold to Michigan-based Bissell Inc., while Beam was sold to Canada's NuEra Air Solutions Inc. Financial terms of the deal were not disclosed, but the Swedish household appliance manufacturer said the divested operations had combined revenues of about $70 million in 2017.

The company said the move is in line with its strategy to improve the global competitiveness of its home care and small domestic appliances, or SDA, division. In 2016, Electrolux sold its main North American vacuum cleaner brand Eureka to China's Midea Group Co. Ltd. as part of this initiative.

"This is an important strategic step to support our profitable growth journey and further investments in innovation," Ola Nilsson, head of Electrolux Home Care & SDA, said in a statement.

Following the sale of Sanitaire and Beam, the company said it will now relocate its North American headquarters to San Francisco from Charlotte, N.C. The San Francisco site houses an innovation hub that Electrolux launched last year.

The company said it does not expect the transactions to result in any material changes to future earnings or net one-off effects on its income statement.

Ernst & Young Capital Advisors LLC acted as exclusive financial advisor to Electrolux in the transactions.