Electrolux AB

The Company

Electrolux AB (Electrolux) operates Baring Industries (Baring), a division of Electrolux Professional, Inc., a leading contractor for the installation of kitchen and foodservice equipment in large institutional facilities such as hotels, hospitals, and casinos. Baring specializes in total contract services to quote, manage, engineer, purchase, deliver, and install foodservice and laundry systems.

The Situation

Due to a shift in strategic priorities, Electrolux decided to consolidate administrative and headquarter offices in the United States to Charlotte, North Carolina. In evaluating the business units, Electrolux AB did not believe that Baring would benefit from the synergies or relocation of the office and, accordingly, decided to dispose of rather than relocate the business.

The transaction

KPMG Corporate Finance LLC (KPMG CF) conducted a competitive sale process to identify strategic acquirers that would enable Electrolux to exit the business while creating the least possible disruption for its customers. KPMG CF developed significant buyer interest, coordinated management meetings and due diligence, and assisted Electrolux in successfully negotiating a transaction with J.F. Duncan Industries, Inc. (Duray, Inc.). Throughout the sale process, we advised Electrolux on all aspects of the deal, including purchaser identification, due diligence requirements, and deal pricing. KPMG CF pursued an aggressive time line to assist in completing this transaction, which was completed within the time frame and appropriate transaction value to meet Electrolux’s objectives.