EQT completes Electrolux deal

The private equity firm has taken control of the German and Slovakian operations in what is the conclusion of a deal that began last July.

Electrolux, the white goods manufacturer, has sold the remaining units of its leisure appliances business to private equity firm, EQT Northern Europe.

EQT has taken control of the German and Slovakian operations in what is the conclusion of a deal that began last July. The deal is expected to complete by 31 January and means a SEK1,800m (E194m) capital gain for Electrolux.

The leisure business, now called Dometic, makes products for the recreational industry including refrigerators and air conditioning units for caravans and hotels. The German and Slovakian units add annual sales of around Skr1.1bn and another 1400 employees to the operations that EQT acquired last July, which already had 1400 staff and sales of Skr4.2bn.

Now that EQT has the whole operation it will look to grow the business both organically and through acquisitions, said Hakan Johansson, a partner at EQT.

“Now we have the entire business, we can focus on future activities and broaden the product base as one group closely held together,” he said, adding that the company has recently bought SeaLand, a US company that makes sanitation products for recreational vehicles and boats.

“Other acquisitions will be sought primarily in the US, UK and Australia as we look to grow the group geographically and in other markets such as products for student accommodation and homes for the elderly,” he said. The firm has plans to float the business on a stock exchange.

EQT Northern Europe is controlled by Investor, the holding company owned by Sweden’s Wallenberg family. The EQT group of funds manages around E3bn and has investments in 26 companies. EQT Scandinavia I and EQT Scandinavia II, launched in 1995 and 1998, are fully invested. EQT Northern Europe is expected to close at around E2bn in March 2001.