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Browse through our collection to discover great vacuum cleaners from the likes of Panasonic, Bosch and Vax. In its 1983 annual report, published last May, the Swedish appliance maker Electrolux said that it hoped to build a strong position in several more countries during the next few years, probably through acquiring companies.vacuum cleaner dust bags india In fact, Electrolux at that time was several months into negotiating a deal that could accomplish its expansion goal with just one leap, the takeover of Zanussi S.p.A. of Italy. hoover vacuum cleaner beltsThe financially troubled Italian company is estimated to have 12 to 13 percent of the European market for white goods such as refrigerators and clothes washers.buy shark vacuum cleaner accessories

Zanussi, Italy's second-largest private-sector company, after the auto maker Fiat, effectively bankrupted itself by expanding into color televisions, consumer electronics and pre-fabricated housing. But its strength in southern Europe in general, and in wet goods such as washers in particular, made it a potentially ideal partner for Electrolux. Where Electrolux is strong, Zanussi is weak, and vice versa, the Swedish company told its employees in a recent company newsletter shortly after an agreement in principle on the acquisition was announced. The plan would require Electrolux to invest about $106 million, half through buying shares that would give it 49 percent of Zanussi and half in debentures that could eventually be converted to stock to give it a 75 percent stake. A 25 Percent Expansion Acquiring Zanussi would make Electrolux about 25 percent larger. The deal would also increase home appliances' share of Electrolux's business from the 52.3 percent reported last year.

In September, Electrolux reported before-tax earnings of $149 million on sales of $1.94 billion in the first half of 1984. ''The Zanussi deal would not have much impact on our U.S. operations, which are 24 percent of net sales,'' Anders Scharp, Electrolux's president, said. ''We are still very interested in expanding those operations. The one possible Zanussi connection would be to market some Zanussi goods through Tappan, our major appliance group in the U.S.'' Electrolux is no longer associated with the Electrolux Corporation of America of Stamford, Conn., which, as a unit of the Consolidated Foods Corporation, still markets vacuum cleaners. The Swedish company sold off its stake in the American company during a liquidity crisis in 1968. However, a 1974 acquisition brought Electrolux of Sweden back into the American vacuum cleaner market with the Eureka model. The Zanussi deal is still conditional in ways that say a lot about how Electrolux has become Sweden's largest multinational company, after Volvo.

Electrolux is a global leader in fields as diverse as vacuum cleaners, chain saws and seat belts. Electrolux, which analysts see as one of the world's most effective takeover artists, wants concessions from Zanussi's bankers, unions, and Italian and Spanish Government officials that will make the deal less risky. Electrolux's demands include an agreement by 104 banks to write off a portion of their $1.2 billion in loans to Zanussi and accept reduced interest payments on the rest. Two banks have yet to agree. Electrolux also wants Government and union cooperation in disposing of unwanted Zanussi assets and regrouping others, and protection from liability for certain Zanussi asset transfers in the 1970's that Electrolux fears may result in litigation. 'Skeletons in the Closet' ''We have to be sure of the size of the skeletons in the closet,'' said Leif Johansson, the 36-year-old head of Electrolux's largest appliance division and the man here who would be responsible for making the acquisition work.

''It remains to be seen whether we make the deal.'' So far, according to industry analysts such as Ian Jacobsson, who follows the company for Savory Milln & Company, a London brokerage house, Electrolux's record with more than 100 acquisitions since 1967 suggests that it has a thorough grasp of the requirements for success. Sales increased 20 times and return on equity averaged 15 percent throughout the 1970's. ''Their policy has been to go after market share, sometimes at high cost,'' Mr. Jacobsson said. The buying spree began when the late Marcus Wallenberg, whose empire included influential or controlling investments in most of Sweden's major companies, drafted Hans Werthen from L. M. Ericsson, a telecommunications company, to become president. Mr. Werthen, 65, who is now chairman, soon formed a close working relationship with Gosta Bystedt, 55, today group chief executive, and Anders Scharp, 50, now president. The task was to take a company relying almost entirely on vacuum cleaner sales, revive its appliance business and expand.

According to Electrolux executives, operating officers can act with the approval of any of the three, although, on paper, they have separate responsibilities. ''After 17 years together, they have developed an extraordinary level of trust in each other,'' said Sven Sundling, the company's public relations vice president. Their basic acquisition formula is not original. Electrolux generally buys something that relates to existing business. It disposes of what is extraneous in order to help finance the deal, or, as in the case of the chainsaw company that came with the Swedish appliance maker Husqvarna in 1978, it makes other acquisitions and investments to build up the acquisition. Most important, Electrolux moves quickly to eliminate operations that overlap or conflict. The two notable departures from the strategy of buying familiar businesses were the 1973 acquisition of Facit, a Swedish office equipment and electronics maker, and the 1980 purchase of Granges, a manufacturing, power generation and mining company.

Both were in financial trouble. Facit was turned around, but most of its operations were sold last year to L. M. Ericsson when Electrolux decided that the investment needed in modern electronic office systems products would be too draining. Granges has been shorn of most of its money-losing divisions. Electrolux says it has no plans to sell the company, citing its production of aluminum and various materials used by Electrolux's manufacturing operations as an important step toward vertical integration. Analysts view this as a rationalization of a move that grew out of Mr. Werthen's involvement in restructuring Granges. ''They will swear until they are black and blue that Granges fits, but it has no consumer side and just doesn't look like it belongs,'' said Brian Knox, an analyst at Grieveson Grant & Company in London. The borrowing to buy Granges, combined with the worldwide economic downturn and the impact of rising interest rates on swollen inventories, pushed Electrolux into a sobering three-year decline in profits as a percentage of sales.