Whirlpool Corporation Acquires Emerson's InSinkErator Business for $3 Billion

Strategic Insights -

Whirlpool Corporation completed the acquisition of Emerson Electric Co.'s InSinkErator business on October 31, 2022, as per the Asset and Stock Purchase Agreement entered on August 7, 2022. The acquisition is valued at $3 billion, with Whirlpool Corporation paying $2.5 billion through a delayed draw term loan facility and the remainder with cash on hand.

The InSinkErator business is a manufacturer of food waste disposers and instant hot water dispensers for domestic and commercial use. The acquisition is expected to expand Whirlpool Corporation's portfolio of home appliances and increase its presence in the North American market.

Key Takeaways:

  • Whirlpool Corporation acquired Emerson Electric Co.'s InSinkErator business for $3 billion, with $2.5 billion paid through a delayed draw term loan facility and the remainder with cash on hand.
  • The acquisition was completed on October 31, 2022, as per the Asset and Stock Purchase Agreement entered on August 7, 2022.
  • InSinkErator is a manufacturer of food waste disposers and instant hot water dispensers for domestic and commercial use.
  • The acquisition is expected to expand Whirlpool Corporation's portfolio of home appliances and increase its presence in the North American market.
  • Whirlpool Corporation entered into a term loan facility with Sumitomo Mitsui Banking Corporation as Administrative Agent and Syndication Agent on September 23, 2022, to finance part of the acquisition.
  • The acquisition is intended to enhance Whirlpool Corporation's competitive position in the home appliance industry.

Statistics:

  • Acquisition value: $3 billion
  • Loan facility amount: $2.5 billion
  • Date of acquisition: October 31, 2022
  • Date of Asset and Stock Purchase Agreement: August 7, 2022
  • Date of delayed draw term loan facility: September 23, 2022

Sources:

  • WHIRLPOOL CORP /DE/ (0000106640), Form 8-K, dated October 31, 2022.
  • SEC Filing: 001-3932, Form 8-K, dated August 10, 2022 (exhibit 2.1).
  • Emerson Electric Co.'s website (Note: Not incorporated by reference, but mentioned in the source material.)