Electrolux is selling off its assets + brands in Egypt: Electrolux, Europe’s biggest home appliances maker, will sell its factories and b rands in Egypt as part of its global “reprioritization” plans, the company said in a statement (pdf) last week. The Swedish manufacturer expects the sales to net SEK 10 bn (USD 962.6 mn).

What’s on the chopping block? Electrolux is planning to sell off the factories it owns in Egypt that produce Zanussi-branded products, in addition to water heater factories in Egypt and South Africa, according to the statement. The company is also selling off its rights to a number of brands in Egypt, including Zanussi — one of the most popular home appliance brands in Egypt — Ideal, Faure, Zanker, Rosenlew, Elektro-Helios, Zoppas, Olympic Electric, and Kwikot. Electrolux will also sell off a number of assets in the US and Hungary.

What they said: Though its water heater segment remains profitable in Egypt, the company has decided that we’re simply not a core market, CEO Jonas Samuelson said in the statement. “Therefore, the group believes in creating opportunities of greater value and faster growth under different ownership,” he said. Samuelson says the exit will not affect the availability of Zanussi products in Egypt.

The 2020s haven’t been kind to Electrolux: The exit comes as the company has been forced to scale back production since 2021 following disruptions resulting from covid-19, supply chain issues, and labor market disruptions. Electrolux also began working on a cost reduction program in several markets last year on the back of “weaker-than-expected market demand and weak earnings” in 3Q 2022.

A 12-year presence: Electrolux has been active in Egypt since 2011 when it acquired Egyptian home appliances manufacturer Olympic Group. The company employs more than 2.1k people locally.

Advisors: Electrolux has tapped Société Générale to advise it on its sales.

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