Whirlpool divests from Italy: 75% of EMEA assets sold to Arcelik

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Whirlpool is reviewing its European strategy in large household appliances, handing over control of the business in this segment to Turkish Arçelik, which also includes the main plants located in Italy. The rumors and indiscretions have accumulated for over a year, also supported by the declarations of the top management, in partial confirmation of the plan. Now there is the official announcement. A new company is born established at 75% from Arcelik and for the rest 25% from Americans. The agreement creates a European platform of large household appliances with a turnover of over 6 billion euros, with over 200 million euros of cost synergies. The announcement by the American multinational concludes the strategic review of the business activity in Europe, the Middle East and Africa (EMA), with the achievement of a definitive contribution agreement.

Under the terms of the agreement, Whirlpool will contribute its European major appliances business (brands Whirlpool, Hotpoint, Bauknecht and Indesit) and Arçelik will contribute its white goods, consumer electronics, air conditioning and small appliances businesses, to create a new company in which Whirlpool will hold 25% and Arcelik 75%. Separately, Whirlpool has reached an agreement in principle to sell and transfer its Middle East and Africa operations, also to Arçelik. Whirlpool, on the other hand, will continue to hold ownership of the assets relating to the EMEA business of small appliances KitchenAid. The transaction is expected to close in the second half of 2023.

The closing of the transaction, the company explains, is subject to additional closing requirements, including obtaining regulatory approvals. Until the closing of the transaction, Whirlpool’s European business will be included in the company’s results. In addition, Whirlpool will have no obligation to provide financing to the new company after the closing of the transaction.

«This announcement – it has affirmed Marc Bitzer, president and chief executive officer of Whirlpool Corporation – marks another important and defining milestone in the transformation of our portfolio. This allows us to participate in significant value creation with business repositioning and cost synergies through our minority stake.”