BENTON
HARBOR, Mich., April 2,
2024 /PRNewswire/ -- Whirlpool Corporation today
announced the completion of its transaction with Arçelik A.Ş
("Arcelik"). This marks a significant step in Whirlpool
Corporation's portfolio transformation and is expected to provide
considerable opportunities to maximize value.
The transaction creates a new European appliance company by
combining Whirlpool Corporation's European major domestic appliance
business with Arcelik's major domestic appliance, consumer
electronics, air conditioning, and small domestic appliance
businesses. Whirlpool Corporation now owns 25 percent of this new
entity, called Beko Europe B.V., and
Arcelik owns 75 percent1. Whirlpool
Corporation is retaining ownership of InSinkErator and its EMEA
KitchenAid small and major domestic appliance business. Separately,
Whirlpool Corporation also completed its previously announced sale
of the company's Middle East and
North Africa business to Arçelik
A.Ş.
"The completion of this transaction highlights our significant
progress to transform into a higher-growth, higher-margin
business," said Marc Bitzer,
chairman and chief executive officer of Whirlpool Corporation. "As
a more focused and agile company, we are well-positioned to drive
value and further our commitment to improving life at home."
Beko Europe B.V. will have
combined revenue of approximately
€5.52 billion based on 2023 results. The
company will be well-positioned to deliver value to consumers
through attractive brands, sustainable manufacturing, product
innovation and consumer services.
The transaction is expected to deliver more than $750 million in net present value of future cash
flow value, in addition to unlocking $200-$300 million
of incremental free cash flow in 2025. Additionally, Holger Gottstein and Gilles Morel, two members of Whirlpool
Corporation's Executive Committee, will be appointed to the board
of directors of Beko Europe B.V.
Whirlpool Corporation will focus on its strong positions in the
Americas and India, with its No. 1
share position in the major domestic appliance businesses for both
North and South America.
Additionally, new products, including those from the higher-margin
KitchenAid small domestic appliance business, are expected
to continue to be a key driver for share and profit growth.
About Whirlpool Corporation:
Whirlpool Corporation
(NYSE: WHR) is committed to being the best global kitchen and
laundry company, in constant pursuit of improving life at home. In
an increasingly digital world, the company is driving purposeful
innovation to meet the evolving needs of consumers through its
iconic brand portfolio, including Whirlpool, KitchenAid, Maytag,
Consul, Brastemp, Amana, JennAir and InSinkErator. In
2023, the company reported approximately $19
billion in annual sales, 59,000 employees and 55
manufacturing and technology research centers. Additional
information about the company can be found at
WhirlpoolCorp.com.
Whirlpool Corporation Additional Information
Certain
statements in this current report relating to Whirlpool
Corporation's expectations for post-closing ownership percentages,
combined sales and cost synergies, future cash flows, cost
efficiency and capital allocation, new product introductions as a
driver of share and profit growth, and shareholder value creation
constitute "forward-looking statements" within the meaning of the
U.S. federal securities laws. These statements reflect management's
current expectations regarding future events and speak only as of
the date of this current report. Forward-looking statements involve
significant risks and uncertainties, should not be read as
guarantees of future performance and will not necessarily be
accurate indications of whether or not, or the times at or by
which, events will occur. Actual performance may differ materially
from that expressed or implied in such statements.
Reference should also be made to the factors discussed under
"Risk Factors" in Whirlpool Corporation's periodic filings with the
Securities and Exchange Commission. Although the forward-looking
statements contained in this current report are based upon what are
believed to be reasonable assumptions, investors cannot be assured
that actual results will be consistent with these forward-looking
statements, and the differences may be material. These
forward-looking statements are made as of the date of this current
report and, except as expressly required by applicable law,
Whirlpool Corporation assumes no obligation to update or revise
them to reflect new events or circumstances.
1 Subject to an adjustment mechanism based
on certain financial matters.
2 €5.5 billion reference based on the
combined 2023 estimated revenues of Whirlpool Corporation and
Arcelik European business
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SOURCE Whirlpool Corporation