Whirlpool and Arçelik are teaming up to form a new standalone European home appliance business.
Expected to generate combined sales of over €6 billion (£5.32bn), the move will see Arçelik, which is the parent company of Beko, own 75 percent of the new business, which is yet to be named, and Whirlpool 25 percent.
Arçelik’s wholly-owned subsidiary Ardutch B.V. and Whirlpool EMEA Holdings LLC will transfer their European subsidiaries to the new company.
Under the terms of the agreement, Whirlpool will contribute its European major domestic appliance business, and Arçelik will provide its major domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses.
The combined businesses are expected to save costs of over €200 million thanks to the merger.
Separately, Whirlpool has agreed in principle to the sale of Whirlpool’s Middle East and Africa business to Arçelik. Whirlpool will retain ownership of its EMEA KitchenAid small domestic appliance business.
“The announcement marks yet another major and important milestone in our ongoing portfolio transformation,” said Marc Bitzer, chairman and CEO of Whirlpool Corporation.
“This allows us to participate in significant value creation from the repositioning of the business and cost synergies through our minority interest.”
Hakan Bulgurlu, CEO of Arçelik, said in its official statement: “This is a unique opportunity for two exceptional companies to come together with a focus on synergies, combined innovation, retail distribution, and sustainability and is consistent with our stated strategy.”
He added: “We are creating a strong foundation to drive value creation for employees, shareholders, and European consumers of white goods, extending Arçelik’s footprint with new growth opportunities in an important region.”
The deal is expected to close in the second half of 2023 and is subject to additional requirement, including obtaining regulatory approvals.
Expected to generate combined sales of over €6 billion (£5.32bn), the move will see Arçelik, which is the parent company of Beko, own 75 percent of the new business, which is yet to be named, and Whirlpool 25 percent.
Arçelik’s wholly-owned subsidiary Ardutch B.V. and Whirlpool EMEA Holdings LLC will transfer their European subsidiaries to the new company.
Under the terms of the agreement, Whirlpool will contribute its European major domestic appliance business, and Arçelik will provide its major domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses.
The combined businesses are expected to save costs of over €200 million thanks to the merger.
Separately, Whirlpool has agreed in principle to the sale of Whirlpool’s Middle East and Africa business to Arçelik. Whirlpool will retain ownership of its EMEA KitchenAid small domestic appliance business.
“The announcement marks yet another major and important milestone in our ongoing portfolio transformation,” said Marc Bitzer, chairman and CEO of Whirlpool Corporation.
“This allows us to participate in significant value creation from the repositioning of the business and cost synergies through our minority interest.”
Hakan Bulgurlu, CEO of Arçelik, said in its official statement: “This is a unique opportunity for two exceptional companies to come together with a focus on synergies, combined innovation, retail distribution, and sustainability and is consistent with our stated strategy.”
He added: “We are creating a strong foundation to drive value creation for employees, shareholders, and European consumers of white goods, extending Arçelik’s footprint with new growth opportunities in an important region.”
The deal is expected to close in the second half of 2023 and is subject to additional requirement, including obtaining regulatory approvals.
Image from left to right: Fatih Kemal Ebiçlioğlu, consumer durables group president of Koç Holding; Marc Bitzer, Whirlpool Corporation CEO; Hakan Bulgurlu, Arçelik CEO
