Emerson Sells InSinkErator Business To Whirlpool For $3B

Emerson Sells InSinkErator Business To Whirlpool For $3B
  • Emerson Electric Co. EMR has agreed to sell its InSinkErator business to Whirlpool Corp WHR in a $3 billion all-cash transaction.
  • InSinkErator's trailing twelve-month revenue, as of March 31, 2022, was $595 million, pretax earnings were $148 million, and EBITDA was $166 million, representing a transaction value of 18.1x EBITDA.
  • InSinkErator, a manufacturer of food waste disposers and instant hot water dispensers, was founded in 1938 and acquired by Emerson in 1968. InSinkErator has nearly 1,400 employees.
  • The transaction is expected to close in Emerson's FY23.
  • Whirlpool expects the acquisition to be immediately accretive to margins, adding ~$1.25 EPS accretion in FY23.
  • InSinkErator will operate as a separate business as part of Whirlpool's North America Region and maintain its headquarters in Mount Pleasant, Wisconsin.
  • Whirlpool plans to initially fund the acquisition through available liquidity, with new debt in place later.
  • WHR held $1.6 billion in cash and equivalents as of June 30, 2022.
  • Price Action: WHR shares are trading lower by 1.75% at $165.52 and EMR lower by 0.35% at $90.07 on the last check Monday.
  • Photo Via Company

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