Electrolux Acquires Olympic Group Jul 11, 2011

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Electrolux on Sunday signed a purchase agreement with Paradise Capital to acquire its 52% controlling interest in Egyptian major appliance manufacturer Olympic Group. Electrolux intends to acquire all the shares in Olympic Group through a mandatory tender offer.

The mandatory tender offer is expected to be finalized by the end of July 2011 and the results for Olympic Group should to be consolidated in Electrolux Group in the third quarter of 2011. Olympic Group is listed on the Egyptian Stock Exchange and plans are to delist the company in the future.

Once the mandatory tender offer Is completed, plans call for Electrolux to sell Olympic Group's ownership in two associated companies - Namaa and B-Tech - to Paradise Capital. Both companies are listed on the Egyptian Stock Exchange. The agreed value of the shares in these two companies totals approximately EGP 450 million (SEK 470 million or approx. US$76 million).

The total equity value of Olympic Group's operations excluding Namaa and B-Tech will be approximately EGP 2.0 billion (SEK 2.1 billion). Olympic Group has a net debt including minority interests of approximately EGP 740 million (SEK 780 million or approx. US$340 million).

Electrolux will enter into a seven-year management agreement with Paradise Capital to ensure continued technical and management support to Olympic Group against a yearly fee of 2.5% of Olympic Group's net sales.

Olympic Group has 7,300 employees and manufactures washing machines, refrigerators, cooking appliances, and water heaters. Olympic Group's 2010 operations, excluding Namaa and B-Tech, had sales of approximately EGP 2.3 billion (SEK 2.5 billion) and a recurring operating income of approximately EGP 265 million (SEK 280m), corresponding to a margin of 11%, and a net profit of approximately EGP 190 million (SEK 200m).

Olympic Group is a leading appliance OEM in the Middle East with volume market share in Egypt of approximately 30%. Electrolux and Olympic Group had a commercial partnership in the region for almost 30 years, covering technology, supply of components, distribution, and brand licensing.

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