Whirlpool Corporation Concludes Asset Deals with Arçelik A.Ş After Strategic Review of EMEA Business
January 31, 2023
Trending News ☀️
Whirlpool Corporation ($NYSE:WHR), a leading global manufacturer and marketer of home appliances, has concluded asset deals with Arçelik A. Ş on Tuesday, following the conclusion of a strategic review of its Europe, Middle East and Africa business. Its portfolio of brands includes Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht, Indesit and other major appliance brands. Whirlpool’s decision to review its EMEA business was driven by the intention to significantly increase the company’s portfolio transformation. As part of the agreement, Whirlpool will contribute its European major domestic appliance business, while Arcelik will contribute its major domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses to a new entity in which Whirlpool will own 25% and Arcelik 75%. The new entity will be jointly managed by Whirlpool and Arçelik and will create a formidable presence in the competitive EMEA region.
The asset deal is expected to provide a more efficient supply chain, increased scale and product innovation, as well as a wider coverage of customers. It is also expected to generate significant cost savings and other benefits. This strategic review and asset deal is part of Whirlpool’s ongoing transformation plan and commitment to delivering long-term value for shareholders. With its strong portfolio of brands and innovative products, the company is well-positioned to capitalize on future growth opportunities in the EMEA region.
Price History
Whirlpool Corporation recently concluded asset deals with Arçelik A.Ş following a strategic review of its EMEA business. The aim of the review was to streamline the company’s operations, and make it more competitive in the European market. Media sentiment towards the deals has been mostly positive as Whirlpool Corporation stock opened at $152.4 on Tuesday and closed at $154.9, up by 0.4% from prior closing price of 154.3. The sale of assets to the Turkish appliance maker will result in the transfer of Whirlpool Corporation’s manufacturing operations in Poland and Italy, as well as its distribution business in Turkey.
Additionally, the company also plans to sell its regional headquarters in France and its logistics center in Italy to Arçelik A.Ş. The completion of asset sale deals is expected to generate substantial cash proceeds for Whirlpool Corporation. The company plans to use some of the proceeds to reduce debt and strengthen its balance sheet, while reinvesting the remaining funds into its core brands, such as KitchenAid and Whirlpool. Additionally, the company also plans to use some of the funds to boost its online presence in the EMEA region. Whirlpool Corporation’s strategic review and asset sale deals are seen as a major step forward in the company’s efforts to become more competitive in the European market. The company’s stock performance on Tuesday reflects the market’s optimistic response to the deals, which is expected to further improve with time. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Whirlpool Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 20.62k | 383 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Whirlpool Corporation. More…
| Operations | Investing | Financing |
| 1.19k | -547 | -1.68k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Whirlpool Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.51k | 13.16k | 77.37 |
Key Ratios Snapshot
Some of the financial key ratios for Whirlpool Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.1% | 10.7% | 4.5% |
| FCF Margin | ROE | ROA |
| 3.1% | 14.2% | 3.3% |
VI Analysis
The VI Star Chart shows that WHIRLPOOL CORPORATION is strong in dividend, medium in asset, profitability and weak in growth. This classification puts WHIRLPOOL CORPORATION into the ‘cow’ category, a type of company that has the track record of paying out consistent and sustainable dividends. Investors interested in such company may be those looking for income, as well as those seeking to diversify their portfolio. WHIRLPOOL CORPORATION has a high health score of 8/10 with regard to its cash flows and debt, which indicates that it is capable of paying off debt and funding future operations. In addition, its dividend yield may be appealing to those looking for steady income over the long term. Overall, WHIRLPOOL CORPORATION is a good candidate for investors who are looking for a strong dividend-paying stock and are comfortable with taking on some risk. The company’s fundamentals suggest that it has the potential to deliver long-term value to its shareholders. More…
VI Peers
The competition in the home appliance industry is fierce. Whirlpool Corporation, the world’s leading manufacturer of major home appliances, competes against Electrolux AB, Traeger Inc, and Allan International Holdings Ltd. These companies are all vying for a share of the market and are constantly innovating to stay ahead of the competition.
– Electrolux AB ($OTCPK:ELRXF)
Electrolux AB is a Swedish multinational home appliance manufacturer, headquartered in Stockholm. It is the second largest appliance manufacturer in the world, after Whirlpool. The company also makes appliances for professional use. The company has a market cap of 3.07B as of 2022 and a Return on Equity of 14.67%. The company’s products include refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small appliances such as microwaves and coffee makers.
– Traeger Inc ($NYSE:COOK)
Traeger Inc, a leading manufacturer of grilling products, has a market cap of 351.16M as of 2022. The company’s Return on Equity is -26.37%. Traeger Inc manufactures and sells a complete line of grills and related accessories. The company offers products through a network of dealers and distributors in the United States and internationally.
– Allan International Holdings Ltd ($SEHK:00684)
Allan International Holdings Ltd is a company that operates in the business of providing steel products and services. The company has a market capitalization of 379.68 million as of 2022 and a return on equity of -1.13%. The company’s steel products and services are used in a variety of industries, including construction, automotive, and energy. Allan International Holdings Ltd has a strong presence in the Chinese market and is one of the leading suppliers of steel products and services in the country. The company’s products and services are also exported to other countries in Asia, Europe, and North America.
Summary
Whirlpool Corporation, a leading global appliance manufacturer, has recently concluded asset deals with Arçelik A.Ş. as part of a strategic review of its European, Middle Eastern and African (EMEA) business. The move has been welcomed positively by investors, as it presents an opportunity for Whirlpool to improve its global market share and profitability. The asset deals will help the company to streamline its operations, reduce costs and strengthen its competitive position in the EMEA region.
Furthermore, the company is expected to benefit from the increased efficiency and cost savings associated with the transaction. Investing in Whirlpool Corporation is a wise choice for those looking for reliable returns in a global market.
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