Electrolux to Spin Off Outdoor Products

Almost 30 years after Stockholm, Sweden-based Electrolux bought Husqvarna, the company announced on Friday that it intends to separate Electrolux Outdoor Products by dividending it to the shareholders. Electrolux Outdoor Products currently includes a division for professional products with major brand names such as Husqvarna, Jonsered, Partner, and Dimas, as well as a division for consumer products with major brand names including Husqvarna, Poulan, Poulan Pro, WeedEater and Flymo. The new outdoor products-focused company will be listed on the Stockholm stock exchange no later than mid 2006.

The name of the new company will most likely be Husqvarna as Husqvarna is the company’s strongest and most well-known worldwide brand. The new company will have annual sales of approximately $3.7 billion US dollars and 12,000 employees worldwide.

“The reason for the separation is that Electrolux now wants to concentrate on its core business – indoor products/appliances – and give the outdoor business the opportunity to focus on its own continued development and success,” noted Husqvarna North America President David Zerfoss in a press release on Friday. “This will strengthen us as a company.”