Emerson to Sell InSinkErator Business to Whirlpool Corporation
August 08 2022 - 6:55AM
Business Wire
Emerson (NYSE: EMR) today announced an agreement to sell its
InSinkErator® business to Whirlpool Corporation (NYSE: WHR) for
$3.0 billion. 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.
The sale of InSinkErator represents a meaningful step in
Emerson’s continued commitment to creating a higher growth, more
diversified and cohesive portfolio.
InSinkErator, the world’s largest manufacturer of food waste
disposers and instant hot water dispensers for home and commercial
use, was founded in 1938 and acquired by Emerson in 1968. Whirlpool
Corporation, a leader in the home appliance industry, is well
positioned to build on InSinkErator’s strong legacy and performance
for long-term growth and success.
The transaction is expected to close in Emerson’s 2023 fiscal
year, subject to regulatory approvals and other customary closing
conditions. Emerson will work closely with Whirlpool Corporation to
help ensure a smooth transition for customers and InSinkErator’s
nearly 1,400 employees.
Emerson engaged Goldman Sachs as its financial adviser and Davis
Polk & Wardwell LLP as legal counsel for the transaction.
About Emerson
Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA),
is a global technology and software company providing innovative
solutions for customers in industrial, commercial and residential
markets. A leader in industrial automation, Emerson helps process,
hybrid and discrete manufacturers optimize operations, protect
personnel, reduce emissions and achieve their sustainability goals
through its Automation Solutions and AspenTech businesses.
Emerson’s Commercial & Residential Solutions business helps
ensure human comfort and health, protect food quality and safety,
advance energy efficiency and create sustainable infrastructure.
For more information, visit Emerson.com.
About Whirlpool Corporation
Whirlpool Corporation (NYSE: WHR) is committed to being the best
global kitchen and laundry company, in constant pursuit of
improving life at home. In an increasingly digital world, the
company is driving purposeful innovation to meet the evolving needs
of consumers through its iconic brand portfolio, including
Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht,
JennAir, Indesit and Yummly. In 2021, the company reported
approximately $22 billion in annual sales, 69,000 employees and 54
manufacturing and technology research centers. Additional
information about the company can be found at
WhirlpoolCorp.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly
historical may be “forward-looking” statements, which involve risks
and uncertainties, and Emerson undertakes no obligation to update
any such statements to reflect later developments. These risks and
uncertainties include the Company’s ability to successfully
complete on the terms and conditions contemplated, and the
financial impact of, the proposed sale of its InSinkErator food
waste disposal business, the financial impact of the AspenTech
acquisition, the scope, duration and ultimate impact of the
COVID-19 pandemic and the Russia-Ukraine conflict, as well as
economic and currency conditions, market demand, including related
to the pandemic and oil and gas price declines and volatility,
pricing, protection of intellectual property, cybersecurity,
tariffs, competitive and technological factors, inflation, among
others, as set forth in the Company's most recent Annual Report on
Form 10-K and subsequent reports filed with the SEC.
*EBITDA of $166 million was adjusted by the following: $15
million of depreciation expense and $3 million of amortization
expense to arrive at pretax earnings of $148 million.
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version on businesswire.com: https://www.businesswire.com/news/home/20220808005232/en/
Investor contact: Colleen Mettler 314-553-2197 Media contact:
Charlotte Boyd 952-994-8607
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