Swedish appliance maker Electrolux is launching a 9 billion Swedish crown ($976 million) rights issue and forming three North American joint ventures with rival Midea Group as part of a major operational restructuring.
One venture will handle North American food preservation product sales, another will operate a food preservation factory in Mexico, and a third will manage a fabric care factory in South Carolina.
The funds raised will partially finance these joint ventures and other restructuring initiatives. Electrolux anticipates approximately 2.4 billion Swedish crowns in negative non-recurring items in the second quarter of 2026 due to the partnership.
The company also plans asset sales in Mexico in the third quarter of 2026, expecting positive cash flow of about 1 billion Swedish crowns. Its North American business, a third of sales, has faced persistent challenges with high costs, underperformance, and intense competition, despite previous restructuring attempts.
For the first quarter, Electrolux reported net sales of around 30 billion Swedish crowns, down from the previous year. Operating income (excluding non-recurring items) was approximately 200 million crowns, with North America posting a significant loss of 900 million crowns.
Electrolux maintained its 2026 outlook, continuing its strategy of cost-cutting and focusing on premium categories amidst weak consumer demand and competition from lower-priced rivals. Shares saw a 2.8% increase.