Electrolux acquires Chilean appliance company CTI

Electrolux acquires Chilean appliance company CTI

As a part of its strategy to grow in emerging markets, Electrolux will
acquire Sigdo Koppers' controlling stake in Compañia Tecno Industrial
S.A (CTI). The acquisition makes Electrolux the largest supplier of
appliances in Chile and Argentina, and further enhances Electrolux
position as a leading appliance company in the fast-growing Latin
American market. 

Sigdo Koppers and certain associated parties have agreed to sell their
controlling interest in CTI to Electrolux, corresponding to
approximately 64% of the outstanding shares. CTI is listed on the
Santiago Stock Exchange. Under the terms of the agreement, Electrolux
will commence a cash tender offer to acquire 100% of the outstanding
shares in CTI at a price of 34.87 Chilean Pesos (CLP) per share with
Sigdo Koppers and certain associated parties committed to tender their
64% stake.

Electrolux will also commence a cash tender offer to acquire all of the
outstanding shares of CTI's subsidiary, Somela, also listed on the
Santiago Stock Exchange, for CLP 325 per share, with CTI committed to
tender its 78.5% stake. CTI's net income from the sale of its shares in
Somela will be distributed to its shareholders through a pre-closing
dividend of CLP 4.39 per share.

 As part of the transaction, CTI will also pay a pre-closing dividend to
its shareholders based on its net income for the first half of 2011, of
CLP 1.63 per share. In total CTI's shareholders will receive CLP 40.90
per share. The implied enterprise value for CTI and its subsidiaries,
corresponds to approximately SEK 4.4 billion (CLP 318 billion). The
tender offers are expected to commence within ten business days from the
signing of the agreement yesterday.

In Chile, CTI manufactures refrigerators, stoves, washing machines and
heaters, sold under the brands Fensa and Mademsa, and it is the leading
manufacturer with a volume market share of 36%.Through its wholly-owned
subsidiary Frimetal, it also holds a leading position in Argentina with
the GAFA brand. Somela is the largest supplier of small domestic
appliances in Chile.

In 2010, CTI generated consolidated sales of CLP 203 billion
(approximately SEK 2.9 billion) and an operating income (EBIT) of CLP 32
billion (approximately SEK 450 million), corresponding to a margin of
16% and a net profit of CLP 23 billion (approximately SEK 330 million).
CTI has 1,200 employees and two manufacturing sites in Chile and one
site in Argentina.

“This acquisition builds on the strengths of Electrolux and CTI and
provides significant growth opportunities that would be difficult to
achieve by either company individually. Together we will generate
significant revenue synergies and cost synergies relating to purchasing
and production,” says Keith McLoughlin, President and CEO of Electrolux.
“Latin America is important to our growth plans and we believe there
will be a successful path ahead for the combined forces of Electrolux
and CTI.”   

“Electrolux has very strong roots in Latin America, and we have been
partners with CTI in certain Latin American markets for the past 15
years. We are committed to the strong brands of CTI, which are aimed at
segments of the market that are complementary to those of Electrolux,”
says Ruy Hirschheimer, President of Electrolux Major Appliances Latin
America.

Telephone conference

The acquisition of the Chilean appliance company CTI will be presented
at a telephone conference today. The telephone conference will start at
16.00 CET and continue until 16.30 CET.

The conference will be chaired by Keith McLoughlin, President and CEO of
Electrolux. Mr. McLoughlin will be accompanied by Jonas Samuelson, CFO
and COO as well as Peter Nyquist, SVP IR and Financial Information.

Slides used in the presentation and the webcast will be available at
Electrolux website, www.electrolux.com (http://www.electrolux.com).

Details for participation by telephone

The details for participation by telephone are as follows:

Participants in Sweden should call +46 (0)8 505 598 53.

Participants in UK/Europe should call +44 (0)20 3043 2436.

Participants in US should call +1 866 458 4087.

More information on CTI is available at
www.sigdokoppers.cl/english/areas_negocios/area_de_negocios_industrial_0
2.html (http://www.sigdokoppers.cl/english/areas_negocios/area_de_negoci
os_industrial_02.html).

For further information, contact Electrolux Press Hotline, +46 8 657
65 07.

Electrolux discloses the information provided herein pursuant to the
Securities Market Act and/or the Financial Instruments Trading Act.