Whirlpool Corporation has entered into an agreement with Arçelik, parent company of Beko and Grundig, to form a European major domestic appliance (MDA) business that is expected to create over €6billion revenue.
Under the terms of the agreement, Whirlpool will contribute its European MDA business, and Arcelik will contribute its MDA, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity, of which Whirlpool will own 25% and Arçelik 75%. Separately, Whirlpool agreed in principle to the sale of Whirlpool's Middle East and Africa business to Arçelik. Whirlpool will retain ownership of its EMEA KitchenAid small domestic appliance business.
The new entity is expected to have combined sales of over €6billion and will be well-positioned to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation, and consumer services. The combined businesses are expected to generate cost synergies of over €200million.
“Today’s announcement marks yet another major and important milestone in our ongoing portfolio transformation,” said Marc Bitzer, chairman and CEO of Whirlpool Corporation. “This allows us to participate in significant value creation from the repositioning of the business and cost synergies through our minority interest.”
The transaction is expected to close in the second half of 2023 and is subject to additional requirements for closing, including obtaining regulatory approvals and other customary closing conditions.
Pictured from left to right: Fatih Kemal Ebiçlioğlu, consumer durables group president of Koç Holding; Marc Bitzer, chairman and CEO of Whirlpool Corporation; Hakan Bulgurlu, CEO of Arçelik.
