Whirlpool Corporation (NYSE: WHR) entered into a definitive agreement with Emerson Electric Co. (NYSE: EMR) to acquire InSinkErator, a Mount Pleasant, Wisconsin-manufacturer of food waste disposers and instant hot water dispensers for home and commercial use, in an all-cash transaction for $3.0 billion.
With the deal, Whirlpool will add InSinkErator to its portfolio of brands now including Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit and Yummly. Following the close of the transaction, InSinkErator is expected to operate as a separate business as part of Whirlpool’s North America Region.
Established in 1938, InSinkErator is a manufacturer of food waste disposers and instant hot water dispensers for home and commercial use with an established an international presence that reaches nearly 80 countries, with subsidiaries in Australia, Brazil, Canada, China, Mexico, New Zealand and the United Kingdom.
On a full-year basis, ending September 30, 2022, InSinkErator is expected to generate sales of ~$650 million and EBITDA(1) in excess of $170 million.
The acquisition, which has been approved by the Board of Directors of both companies, is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2022. Whirlpool’s 2022 guidance remains unchanged. The transaction is expected to be immediately accretive to Whirlpool Corporation’s margins, adding approximately $1.25 EPS accretion in fiscal 2023.
FinSMEs
09/08/2022