Whirlpool to Sell Russia Business to Arcelik
June 28 2022 - 07:45AM
Dow Jones News
By Will Feuer
Whirlpool Corp. said it has agreed to sell its Russia business
to Turkish household appliances maker Arcelik A.S. for deferred
payments, becoming the latest multinational company to announce
plans to divest its Russia business following the country's
invasion of Ukraine.
The company expects to record a loss of $300 million to $400
million during the second quarter of 2022 due to the deal.
The sale includes Whirlpool's manufacturing site in Lipetsk,
Russia, and its sales organization in Moscow, as well as sales
operations in Kazakhstan and other select countries within the
Commonwealth of Independent States.
The deferred payments are expected to be made over a ten-year
period and are subject to a cap based on the net asset value of the
business as of closing, which is currently estimated at about 220
million euros, or roughly $233 million. The sale is expected to be
finalized in the third quarter of 2022.
"The company, as a U.S. company, is taking this action given the
current operating environment in Russia and has concluded the
agreement to be the best course of action for its employees,
shareholders and overall business," Whirlpool said in a securities
filing.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
June 28, 2022 07:30 ET (11:30 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Whirlpool (NYSE:WHR)
Historical Stock Chart
From Feb 2024 to Mar 2024
Whirlpool (NYSE:WHR)
Historical Stock Chart
From Mar 2023 to Mar 2024