Electrolux to acquire the household appliances operation of Email Ltd., Australia

Electrolux to acquire the household appliances operation of Email Ltd., Australia (ELUX) The Electrolux Group has signed a Heads of Agreement with Email Ltd. to acquire the Major Appliances Business of Email Ltd., Australia's leading producer of household appliances. The purchase price will be approximately AUD 485 million (approx. SEK 2.5 billion), subject to adjustment depending on the net asset value on the closing date. The purchase is conditional upon the success of Smorgon Distribution Limited's takeover bid for Email. Email's Major Appliances Business includes the manufacture, distribution, sale, marketing and servicing of white-goods in Australia and New Zealand (such as refrigerators, freezers, cookers, washing machines, dryers, dishwashers), the manufacture of white-goods components, as well as import and export of white-goods into and from Australia. In the fiscal year ending March 31, 2000, sales of the Major Appliances Business were AUD 919 million and the company held a market share of approximately 60% in the Australian market. The operating profit was AUD 55.2 million, which corresponds to an operating margin of 6%. The company had 4,800 employees in Australia and New Zealand. "An acquisition of Email's Major Appliance Business would support the Electrolux Group's strategy to grow in our core areas," says Michael Treschow, President and CEO of the Electrolux Group. "Email is a prominent company with which we have had a long-term relationship, and its household appliances operations will be an important part in fulfilling our global strategy. Through this acquisition, Electrolux will be able to considerably strengthen the Group's position in Australia and New Zealand and our position as the world's number one choice." Electrolux is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chain saws, lawn mowers, and garden tractors. In 1999, Group sales were SEK 120 billion and the Group had 93,000 employees. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use. The Electrolux Group includes famous appliance brands such as AEG, Zanussi, Frigidaire, Eureka, and Husqvarna. Further information For further information please contact Johan Bygge, Senior Vice President +46 70 594 73 48. The Electrolux Press Hotline is available at +46 8 657 65 07. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/11/20/20001120BIT00020/bit0001.doc http://www.bit.se/bitonline/2000/11/20/20001120BIT00020/bit0002.pdf