On August 8th, 2018, the Electrolux Company divested both their commercial line and central vacuum in an attempt to refocus their energy on residential vacuum usage. Both vacuum branches had made a combined revenue of $70 million in 2017.
The Sanitaire commercial vacuum line, which is continues to be healthy but no longer fits into Electrolux’s core business based on their global direction, was sold to Bissell Homecare Inc. With Bissell being one of the leading commercial companies, Sanitaire is sure to be a quality asset to their growing line of floorcare products.
The Beam line has been sold to Nuera Air. Like the Sanitaire line, the Beam central vacuum line, although healthy in sales, does not fit in Electrolux’s core global priorities. Both Electrolux and Nuera Air will work closely with each other to make a smooth transition for both businesses and the customer.
“This is an important strategic step to support our profitable growth journey and further investments in innovation. We have an exciting pipeline of launches for this year and next, as we continue to build a responsive ecosystem of products for wellbeing in the home,” said Ola Nilsson, Head of Electrolux Home Care & SDA. “Both BEAM and Sanitaire are strong brands with excellent products that will have better opportunities to grow with their new owners.” Source
Electrolux is choosing to focus on home sales in a growing competitive market. Expect some new and innovative models to be released in the near future as they compete against the big brands around the globe in residential canisters and uprights exclusively. Not only are they divesting these two branches, they are also moving their headquarters to San Francisco. This could prove crucial to expansion into a new line of robotic vacuums, as evidenced by the release of their Pure i9 in the United States earlier this year.
What does this mean for the consumer? Well, it means that each line of vacuums, whether it’s residential, central, or commercial, will now have the proper attention put on them as their new respective companies prepare to push the boundaries of current technology with new, exciting products. Instead of Electrolux needing to stretch themselves thin, each line is now being managed by the experts in their field, which will benefit the end user considerably. In the end, Electrolux is looking out for the consumer and ensuring that their products continue to be the highest quality in the industry.
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