PAOLO LIOY TO WHIRLPOOL ITALY
Agreement between Whirlpool and Arcelik: a 6 billion European platform is born
The world of “white goods”, as the household appliances sector is defined in jargon, is changing. Whirlpool in fact, it announced that it had reached an agreement with the Turkish multinational arcelik (which produces among other brands also Beko e Grundig) for the creation of a joint venture. The combined entity is expected to achieve combined revenue of more than 6 billion euros. The combined businesses are expected to generate cost synergies of over 200 million euros. Thus a new European joint venture was born between Whirlpool and Arçelik which it will manage overall 11 industrial sites and over 20,000 employees across Europe and Great Britain.
The agreement between Whirlpool Corporation and Arcelik has no impact on employment until the closing of the transaction. The company reports this to AGI, explaining that in the new entity all 9 European sites of Whirlpool will merge, of which 4 are Italian, and 2 of Arcelik in Romania.
Based on the terms of the agreement – a statement explains – Whirlpool will contribute cwith its European major home appliances business and Arcelik will contribute its home appliances, consumer electronics, air conditioning and small appliances businessesto the creation of a new company of which Whirlpool will hold the 25% and Arcelik the 75%. Separately, Whirlpool has reached an agreement in principle to sell and transfer its assets to Middle East e Africa ad arcelik. Whirlpool will continue to own the assets of the EMEA small appliance business KitchenAid.
“Today’s announcement marks another important and decisive milestone in our portfolio transformation,” he said Marc Bitzer, president and chief executive officer of Whirlpool Corporation. “This allows us to participate in significant value creation with business repositioning and cost synergies through our minority stake.” The transaction – reads the note – it is expected to close in the second half of 2023 and is subject to additional closing requirementsincluding obtaining regulatory approvals and other customary closing conditions.
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