Whirlpool Corporation completed the acquisition of InSinkErator, Inc. from Emerson Electric Co..
October 31, 2022
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Whirlpool Corporation (NYSE:WHR) agreed to acquire InSinkErator, Inc. from Emerson Electric Co. (NYSE:EMR) for $3 billion on August 7, 2022. InSinkErator's trailing twelve-month revenue, as of March 31, 2022, was $595 million, pretax earnings were $148 million and EBITDA* was $166 million. Whirlpool Corporation plans to initially fund the acquisition through available liquidity, with new debt put in place at a later date. As of September 23, 2022, Whirlpool entered into a term loan agreement for an aggregate lender commitment of $2.5 billion to fund a majority of the $3 billion purchase price. InSinkErator is expected to operate as a separate business as part of Whirlpool Corp.'s North America Region. InSinkErator will maintain its headquarters in Mount Pleasant, Wisconsin. The transaction is subject to regulatory approvals and other customary closing conditions. The acquisition has been approved by the Board of Directors of both companies. The transaction is expected to close in the fourth quarter of 2022. The transaction is subject to regulatory approvals and other customary closing conditions. The acquisition is expected to be immediately accretive to Whirlpool Corporation's margins, adding approximately $1.25 EPS accretion in fiscal 2023. Emerson engaged Goldman Sachs as its financial adviser and Marc O. Williams, Jennifer S. Conway, Frank J. Azzopardi, Michael Mollerus, David A. Zilberberg and Phillip R. Mills of Davis Polk & Wardwell LLP as legal advisors in the transaction. Greenhill & Co. LLC served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal counsel to Whirlpool Corporation.
Whirlpool Corporation (NYSE:WHR) completed the acquisition of InSinkErator, Inc. from Emerson Electric Co. (NYSE:EMR) on October 31, 2022.
Whirlpool Corporation is the world leader of the manufacturing and the marketing of large domestic equipments. The group's products are marketed mainly under the Whirlpool, Maytag, JennAir, KitchenAid, InSinkErator, Yummly, Amana, Bauknecht, Indesit, Hotpoint, Ignis Consul, Brastemp and Acros brands. Net sales break down by family of products as follows:
- refrigerators, freezers and air conditioners (31.7%);
- home laundry appliances (26%): washing machine and dryer;
- cooking appliances (25.6%): oven, microwave ovens, hoods, cooktops;
- dishwasher (9.2%);
- other (2.8%): mixers, toasters, culinary robots, etc.
The remaining net sales (4.7%) are from spare parts sales and after-sales services.
At the end of 2022, the group has 35 production sites worldwide.
Net sales break down geographically as follows: North America (58.2%), Europe/Middle East/Africa (20.4%), Latin America (15.9%) and Asia (5.5%).