Electrolux said it plans to sell its nine year old Memphis, Tennessee cooking plant that has been sitting idle since June for approximately $82.5 million. The all-cash deal is expected to close this quarter to an unnamed buyer.
After shifting production from Canada, Electrolux opened the 750,000-square-foot facility in November 2013. It cost the company $266 million to build, offset by some $137 million in state and local incentives, and produced ranges, wall ovens and other cooking products until its closure in June.
Electrolux originally planned to close factory in 2020. Local workers and media attributed to high steel tariffs and decline in Sears’ appliance business. The company however, continued operations through the pandemic when consumer demand and supply-chain constraints kept appliances in short supply.
Production has now been consolidated into Electrolux’s sprawling Springfield, facility near Nashville, Tennessee which has been expanded and updated with $250 million in capital improvements.
The manufacturer declined to disclose the identity of the buyer but said it expects to record a gain of $65.8 million from the sale.
