Electrolux Professional Group Announces Acquisition of Royal Range
Electrolux Professional Group is excited to share that it has entered into a significant agreement to acquire the assets of Royal Range, a prominent player in the commercial cooking sector in the US.
Strategic Move for Growth
This acquisition is viewed as a crucial step toward enhancing Electrolux's cooking platform in America. Bo Erickson, President of Business Area Food Americas at Electrolux Professional, commented on the strategic importance of Royal Range. He mentioned that this merger not only broadens Electrolux's product offerings but also integrates new categories that align well with the existing portfolio.
Enhancing Product Offerings
Royal Range, established in 1995, is known for its high-quality cooking products, including ranges, ovens, fryers, and countertop appliances. With a dedicated team of around 40 employees based in a manufacturing facility in Eastvale, the company stands out in a competitive marketplace.
Sales Projections and Future Growth
Royal Range is projected to achieve sales of approximately SEK 100 million in 2025, contributing positively to Electrolux’s EBITA margin goals, which aim for an impressive 15%. While financial specifics regarding the purchase price remain undisclosed, the acquisition is anticipated to finalize in the first quarter of 2026, marking a significant milestone for both companies.
Leadership Insights
Electrolux Professional's decision to leverage its robust sales force in order to boost Royal Range's product visibility and market penetration reflects a forward-thinking approach. This synergy is likely to yield fruitful results for both businesses, creating a stronger foothold within the culinary equipment sector.
Looking Ahead
The acquisition brings fresh optimism to Electrolux Professional's operational blueprint. The combination of resources and expertise between Electrolux and Royal Range is expected to spark innovation, enhance customer experience, and ultimately drive greater market share.
Contact for More Information
For any inquiries regarding this acquisition, please reach out to Jacob Broberg, Chief Communication & Investor Relations Officer, at +46 70 190 00 33.
Frequently Asked Questions
What is the significance of Electrolux acquiring Royal Range?
This acquisition is intended to expand Electrolux's product offerings and bolster its presence in the commercial cooking market.
When is the acquisition of Royal Range expected to be completed?
The acquisition is expected to close in the first quarter of 2026.
What products does Royal Range manufacture?
Royal Range manufactures a variety of cooking equipment, including ranges, ovens, fryers, and more.
Who is the contact person for more information on the acquisition?
Jacob Broberg is the point of contact for inquiries, reachable at +46 70 190 00 33.
How might this acquisition affect Electrolux's EBITA margin?
Royal Range's projected strong sales are expected to be accretive to Electrolux's EBITA margin target of 15%.
