Whirlpool to buy InSinkErator for $3 billion from Emerson
2022.08.08 15:58
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FILE PHOTO: Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid
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(Reuters) -Whirlpool Corp said on Monday it would buy Emerson (NYSE:EMR) Electric Co’s food waste disposal business InSinkErator for $3 billion.
Whirlpool (NYSE:WHR) said the purchase of InSinkErator, one of Emerson’s best known brands that also makes hot water dispensers, would add to its portfolio of home appliances.
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.
Whirlpool said it plans to fund the acquisition of InSinkErator, which had a trailing twelve-month revenue of $595 million as of March end, through cash and debt.
The business is expected to report EBITDA of over $170 million for year ending Sept. 30.
The deal is expected to close in the fourth quarter, Whirlpool said.
Greenhill (NYSE:GHL) & Co. LLC served as the financial adviser for Whirlpool, while Wachtell, Lipton, Rosen & Katz served as the legal counsel.
