Whirlpool Corporation has officially closed on its transaction that transfers most of its European business operations to a new company venture formed with Turkish multinational home appliances manufacturer Arcelik, owner of the appliance brands Beko and Grundig.
On March 7, 2024, the parties received final regulatory approval from the U.K. Competition and Markets Authority, the final regulatory approval required for closing. On April 1, 2024, the parties closed the European transaction and a separate sale related to Whirlpool Corporation’s Middle East and Africa interests.
As the company disclosed in early 2023, Whirlpool Corporation entered into an agreement with Arçelik in which each will each contribute their respective European major domestic appliance business operations into the newly formed European appliance company.
The company says 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 percent.
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.
In a statement from Whirlpool Corporation, company leaders noted the move positions them to be more agile and make more money.
“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.”
The company says 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 says post-transaction, they will now 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.
