Whirlpool Corp., already the world's largest maker of major appliances, will acquire a majority interest in Indesit Company, based in Fabriano, Italy, for an expected purchase price of EUR 758 million/USD $1.038 billion.
Whirlpool's share purchase agreements will give it a 66.8% voting stake in Indesit. Whirlpool expects the acquisition to close by the end of 2014.
The acquisition relies on three share purchase agreements made with Fineldo S.p.A., for a 42.7% stake in Indesit; with certain members of the Merloni family for a 13.2% stake in Indesit; and with Ms. Claudia Merloni, for a 4.4% stake in Indesit. This total of 60.4% of Indesit stock capital, in light of the treasury shares held by Indesit, represents a 66.8% voting stake.
Whirlpool Corp. is the world's biggest producer of major appliances and has 2013 sales of $19 billion.
Indesit operates worldwide and has leading market positions in much of Western Europe and Eastern Europe, including Russia. It had 2013 revenues of EUR 2.671 billion — approximately USD $3.6 billion.
"We believe this will ideally position us for sustainable growth in the highly competitive and increasingly global home appliance market in Europe," said Jeff M. Fettig, chairman and CEO of Whirlpool Corporation.
"We expect this transaction will enable us to create a more efficient appliance company in Europe, with increased value through improved asset utilization and complementary country positions, products, brands and distribution," said Marc Bitzer, president of North America and Europe, Middle East and Africa (EMEA) for Whirlpool.
Click here to read more background on Indesit Company.
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