Swedish Investment Company Acquires Electrolux Motor Business
The Electrolux Group has announced that it has agreed to divest its fractional motors business to AB Traction, a Swedish investment company listed on the OM Stockholm stock exchange for an undisclosed sum. FHP Elmotor is a part of the Components product line of Electrolux’s Professional Indoor business area. The company is focused on designing, developing and marketing low power rated motors that are used in a range of industrial and commercial applications.
FHP Elmotor recorded annual sales of some 265 million Swedish Krona ($25.0 Million). The company produces motors for lawnmowers, special industrial applications and small kitchen appliances. In total the company employs some 265 people. Trends over recent years have not been too strong for the company, total sales have declined by in the region of ten per cent a year over the past two years, and the company is believed to have also made a loss over the same period. Conversely, the motors markets in which the company is active have continued to grow indicating the pressures that challenge those manufacturers that have failed to adapt to the increased demands for improved and more cost competitive technology as well as high volume demands. FHP Elmotor operates in a field that offers positive growth potential, but competing successfully in the field is increasingly difficult.
The fractional motors market is continuing to develop with the market for DC mini-motors (power ratings under 250 watts) valued at in the region of $600.0 million in Europe and the universal fractional motors market (power ratings below 750 watts) valued at some $500.0 million. Key trends include the wider use of small standard motors in a variety of applications with the market driven by deeper application penetration, demand for improved control across a range of specialised applications as well as the user focus on simple and improved control. Small electric motors find applications in varying areas from desktop domestic appliances to lawn equipment as well as other areas. With the increased customer focus on ease of operation as well as improved and more productive leisure time, there is considerable scope for companies that develop the right product and strategy.