Whirlpool Chairman and CEO Marc Bitzer is enthusiastic and excited about his just-announced acquisition of ‘InSinkErator’, the Wisconsin-based company that owns a 70 percent market share in the restidential disposal market. Whirlpool will pay $ 3 Bilion Dollars cash for InSinkErator, and hopes to close the deal late this year.
Bitzer told financial writers on a Monday morning conference call that the InSinkErator buy is a ‘unique opportunity in the kitchen’ for Whirlpool. “The disposal is the ‘next door neighbor’ to our diswashers,” Bitzer said with a smile.
Bitzer and Whirlpool Chief Financial Officer Jim Peters said the InSinkErator purchase is precisely in line with Whirlpool’s stated strategy to invest in ‘high growth, high margin businesses’ that fit well into the company’s portfolio.
Bitzer said the move shows Whirlpool’s strong belief in the long term health and growth of the US housing market. He also pointed out that InSinkErator enjoys a strong position in the product replacement and upgrade cycle of kitchen appliances. 80 percent of INSinkErator’s sales come from residential disposal units, 5 percent from commercial disposals, and 15 percent from ‘instant hot water’ dispensers.acc
Peters estimated InSinkErator’s full year 2023 sales at $ 650 Million Dollars, translating into approximately $ 1.25 in shareholder return, added to previous EPS estimates for 2023. It will be ‘immdiately accretive’, according to Peters.
Whirlpool officials said InSinkErator’s headquarters will continue to operate in Mount Pleasand, Wisconsin and the brand will occupy distinctive space in the Whirlpool portfolio. No mention was made of any personnel moves related to the acquisition .
