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Electrolux History

Electrolux History

Electrolux HistoryElectrolux History
Electrolux UltraOneElectrolux UltraOne
Electrolux ErgorapidoElectrolux Ergorapido
Axel Wennergren, 1919Axel Wennergren, 1919
1912 Lux1912 Lux

In 1912, Electrolux launched its first vacuum cleaner – Lux I. Over the 100 years since then, Electrolux has launched some of the most innovative vacuum cleaners and appliances in the market. 

He was a visionary who helped to develop products of the future by understanding the needs of people and not submitting to challenges. His dream to improve quality of life has had fundamental impact on homes around the world.

Founding

1910 Electrolux was incorporated as Elektromekaniska AB.

1919 Elektromekaniska AB merged with Swedish AB Lux, and Aktiebolaget Electrolux was established. Electrolux led the development of the modern canister-type vacuum cleaner and the absorption refrigerator during the early part of the 20th century.

Stock exchange listing

1928 Electrolux was introduced on the London Stock Exchange. The Group had five plants,approximately twenty subsidiaries and 250 offices throughout the world, and a total turnover of SEK 70 million.

1930 Electrolux was listed on the Stockholm Stock Exchange. In 1987, trading of American Depositary Receipts, ADRs, representing Electrolux B-shares started on the NASDAQ National Market.

In March 2010 Electrolux was delisted from the London Stock Exchange (LSE). Following the delisting, all trading in Electrolux shares is concentrated to Nasdaq OMX Nordic Market in Stockholm. The Electrolux B-share was listed on the LSE since 1928. The LSE listing was a part in a strategy to increase international ownership in Electrolux. However, this listing was no longer deemed necessary due to deregulation of international capital markets and the increased foreign ownership of shares on Nasdaq OMX Stockholm.

Expansion

1933 Vacuum cleaner production began in Old Greenwich, Connecticut, USA, and the first air-cooled refrigerator was produced.
1960’s Electrolux initiated the restructuring of the fragmented Western European white goods industry. In 1968, the minority interest (39%) in Electrolux Corp., USA was sold to Consolidated Food for almost SEK 300 million. The cash generated provided Electrolux with the key to future expansion.

1984 Italian company Zanussi, including subsidiaries in Spain, was acquired, making Electrolux a leader in the European household appliances market and in the food service equipment market.

1986 WhiteConsolidated Inc, the third largest white goods company in the United States with brands such as Frigidaire, Gibson, Kelvinator and White Westinghouse, was acquired.

1986-89 The Outdoor Products business area expanded with the 1986 acquisition of the U.S. company Poulan/Weed Eater and the 1989 acquisition of the outdoor power products business of the Roper Corporation.

Strengthening core business

1990′s The European expansion continued with the 1994 purchase of the white-goods division of German AEG. Restructuring programs and other measures were implemented to improve profitability, e.g. a two-year restructuring program in 1997, beginning with the divestment of the industrial products sector, as well as the sewing machines, agricultural implements and interior decoration equipment operations. In 1998 the core business comprised Household Appliances, Professional Appliances and Outdoor Products, and Annual

Group Sales had grown to SEK 117 billion.

2000 Electrolux AB re-acquired the trademark and company name “Electrolux” in North America, and thereby gained global control of the company name and the Group’s most important brand.

2001-02 The household division of the Australian company Email Ltd, was acquired in 2001. During 2001 and 2002 two restructuring programs were implemented throughout the Group, with divestments of non-core business, productivity improving measures, cost cutting, consolidation of production, rationalization of sales and marketing, write-downs of assets and personnel cutbacks.

2003-04 The consolidation of brands, with Electrolux as main brand, accelerated and a consumer insight driven product development process was initiated. The group re-introduced the Electrolux brand in USA with vacuum cleaners in 2003 followed by high-end white goods in 2004. During 2003 and 2004 relocation of manufacturing to low cost countries, e.g. to Eastern Europe, South-East Asia and Mexico, accelerated.

In February 2005, the Board of Electrolux decided that the Group´s Outdoor Products operation would be spun off as a separate company and distributed to Electrolux shareholders. The AGM in 2006 decided that all shares in the wholly owned subsidiary Husqvarna AB should be distributed, and that each share in AB Electrolux entitled the owner to one share in Husqvarna AB. Owners of series A shares in AB Electrolux received series A shares in Husqvarna AB, and owners of series B shares received series B shares in Husqvarna AB, June 7, 2006, was the last trading day of the Electrolux-share including entitlement to dividend of shares in Husqvarna AB.

The Group continues the efforts to transform Electrolux into an innovative, consumer-focused company. Comprehensive launches of new products under the Electrolux brand were implemented in Europe in 2007 and in the US 2008. Plant closures and cutbacks are initiated and manufacturing is relocated to Eastern Europe, South-East Asia and Mexico.

In 2011 Electrolux completed the acquisitions of Olympic Group and Compañia Tecno Industrial S.A (CTI). Olympic Group is a leading manufacturer of appliances in the Middle East. Electrolux acquisition of CTI makes Electrolux the largest supplier of appliances in Chile and Argentina, and further enhances Electrolux position as a leading appliance company in the fast-growing Latin American market.

Today Electrolux is a global leader in household appliances and appliances for professional use, selling more than 50 million products to customers in more than 150 markets every year. The company makes thoughtfully designed, innovative solutions based on extensive consumer research, meeting the desires of today’s consumers and professionals. Electrolux products include refrigerators, dishwashers, washing machines, cookers, air conditioners and small appliances such as vacuum cleaners, all sold under esteemed brands like Electrolux, AEG, Eureka and Frigidaire.

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