Electrolux has signed an agreement to expand its operations in the growing emerging markets in Eastern Europe through an acquisition of a factory in Ivano-Frankivsk, Ukraine.
The acquisition strengthens the Electrolux presence in Eastern Europe and will function as a part of the Electrolux supply base for markets in Central and Eastern Europe. Ukraine participates in the free trade framework within the Commonwealth of Independent States (CIS), which includes Russia, Kazakhstan, Armenia, Azerbaijan and other countries.
“By broadening our manufacturing base in the emerging markets of Eastern Europe we will increase our competitiveness and be able to supply CIS markets from within the CIS area,” says Hans Str¥berg, President and CEO of Electrolux.
The factory, which manufactures washing machines, has approximately 150 employees and was acquired in 2003 by its current owner, Antonio Merloni S.p.A.
The purchase price is EUR 19m.
Closing of the deal is expected to take place in the first quarter of 2011 and is subject to approval by competition authorities.