Whirlpool and Arcelik, agreement for the European home appliance market

A new platform is born on the market with a turnover of over 6 billion. In the joint venture between the two companies, the Turks will have 75% and the Americans 25%

A new company is born, 75% owned by the Turks of Arçelik AS and the remaining 25% by the Americans of Whirlpool for the European business of large household appliances and therefore a European platform of large household appliances with a turnover of over 6 billion euros, with over 200 million euros of cost synergies. This was announced today by the American multinational which has thus concluded the strategic review of its business activity in Europe, the Middle East and Africa (Eema), reaching the definitive contribution agreement with Arçelik AS, which significantly accelerates the transformation of the portfolio by Whirlpool.

Transaction finalized in the second half of 2023

Under the terms of the agreement, Whirlpool will contribute its European major appliances business (brands Whirlpool, Hotpoint(2), Bauknecht and Indesit) and Arcelik will contribute its white goods, consumer electronics, air conditioning and small appliances businesses, the creation of a new corporate entity 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 to Arcelik. Whirlpool will continue to own the assets of the KitchenAid small appliance EMEA business. The transaction is expected to close in the second half of 2023.

The requirements for closing the operation

Closing is subject to additional requirements, including obtaining regulatory approvals and other customary closing conditions. Until the closing of the transaction, Whirlpool’s European operations 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. “Today’s announcement marks another important and defining milestone in the transformation of our portfolio,” 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.”