Note 26 Acquired and divested operations

All amounts in SEKm unless otherwise stated

Acquired operations

In June 2016, Electrolux signed an agreement to acquire the Australian and Singapore based Vintec business. Vintec supplies a wide range of wine cabinets throughout the Asian region. The annual sales of the business amounts to approximately AUD 21m. About two thirds of the sales are in Australia. The acquisition was completed in August 2016. Consideration paid in 2016 amounts to AUD 20.7m (SEK 134m). If certain criteria are met, an additional consideration, including a hold-back amount, of up to AUD 5.5m may be paid during the period of 2 years after completion.

In 2015, Electrolux acquired the Chinese company Shanghai Veetsan Commercial Machinery Co Ltd, operating in the professional dishwasher segment. The acquisition was completed in May 2015. Consideration paid in 2015 amounts to CNY 58m (SEK 79m). In 2016, an additional consideration of CNY 19.6m (SEK 26m) was paid.

In 2014, Electrolux acquired the BeefEater barbecue business ­situated in Australia. The final consideration of AUD 2m (SEK 12m) was paid in 2015.

Divested operations

In December 2016, Electrolux signed an agreement to divest the North American vacuum cleaner brand Eureka and related assets for a gross consideration of USD 40m (SEK 343m). The divested business accounted for an annual net sales of approximately USD 60m. The divestment was completed in December 2016. Transaction costs incurred amount to SEK 19m, whereof SEK 7m were paid in 2016. The divestment resulted in a capital gain of USD 19m (SEK 164m). Rationalization activities and additional asset write-downs triggered by the divestment were identified and recognized in the 2016 income statement amounting to USD 7m (SEK 57m). Future cash payments in 2017 and 2018, related to Electrolux commitments in the agreement with the buyer, are estimated to USD 4m.