Electrolux Buys "Electrolux"

The Electrolux Group, the world’s largest home appliance manufacturer, is purchasing for $50 million the trademark and company name from Electrolux LLC, a U.S. company well known for its vacuum cleaners.

The Electrolux Group held a 38% share in the predecessors of Electrolux LLC until 1968, when it sold its investment in the U.S. to raise capital for expanding operations in Europe. At that point, Electrolux LLC became an independent company with sole rights to the name in North America. The current $50 million agreement means that the Electrolux name can be used by Electrolux Group operations in the U.S. that sell more than $5 billion in products per year under the names Frigidaire, White-Westinghouse, Gibson, Poulan and others. (They will not yet be able to use the Electrolux name for vacuum cleaners, to avoid confusion with Electrolux LLC.) The Electrolux Group feels that purchase of the Electrolux name is well worth the cost, given the company strategy of introducing new and innovative European products into U.S. markets under the Electrolux global brand name.