Whirlpool: Home appliance manufacturing company Whirlpool India is now on the verge of being sold. Global private equity firm Advent International has come very close to buying a major stake in it. The deal will be finalized after talks between the two companies by the end of this month.
Why did the company take this big decision?
Whirlpool India, a company that makes home appliances like washing machines, KitchenAid and refrigerators, suffered a loss of $ 1.5 billion in the year 2022. Since then the company is trying to reduce costs. Besides, in big markets like America, it is increasing its focus on high profit generating products like blenders and coffee makers.
Whirlpool India now remains the only contender for this deal, which is in talks with Whirlpool Corporation to buy 31 percent stake in the Indian unit. According to sources, the deal may be finalized by the end of this year. Earlier, companies like Havells and Reliance Industries have also shown interest in purchasing Whirlpool India.
Advent’s third purchase in the appliances segment
According to Indian rules, first Advent will buy 31 percent stake in the company, after which it will have to make an offer to buy another 26 percent from the company’s investors. If the offer is fully subscribed, Advent’s stake will increase to 57 percent. This deal price will be Rs 9682.88 crore, after which Whirlpool Corporation’s stake in the company will be reduced to less than a quarter.
This will be Advent’s third purchase in India’s appliances segment since 2015. Earlier, Advent has acquired the consumer electrical business of Crompton Greaves and Eureka Forbes. An official involved in the deal, on condition of anonymity, said, final due diligence and documentation work is going on.
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