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Whirlpool Corp (NYSE: WHR) on Monday said it would buy Emerson Electric Co’s (NYSE: EMR) food waste disposal business InSinkErator for $3 billion.
The all-cash deal is expected to close in the fourth quarter of 2022 and is subject to regulatory approvals.
The home appliances maker said it expects the deal to add about $1.25 to earnings per share in its 2023 fiscal year.
Whirlpool said that acquiring InSinkErator, one of Emerson’s best-known brands that also makes hot water dispensers, would add to its home appliances portfolio.
InSinkErator, which was founded in 1938, has an over 70% market share in the food waste disposal industry. It was bought by Emerson in 1968.
The transaction comes as Whirlpool reviewed its business to concentrate on areas with high growth and margin potential by focusing on the Americas, countertop appliances and the commercial segment.
Whirlpool will also benefit from people replacing their Insinkerator units, helping the company maintain sales as the US housing market softens in the near term.
The company announced the sale of its Russian operations in late June.
Greenhill & Co LLC served as the financial adviser for Whirlpool, while Wachtell, Lipton, Rosen & Katz served as the legal counsel.
Picture Credit: Bloomberg
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