Whirlpool’s manufacturing complex in Lipetsk, Russia
Company selling its Russian operations to Beko parent Arcelik
By Alan Wolf, YSN
Do svidaniya!
Whirlpool is pulling up stakes in Russia amid the country’s war with Ukraine and its attendant turmoil.
According to an 8-K filing with the U.S. Securities and Exchange Commissions (SEC), the vendor plans to sell its Russian operations to Turkish conglomerate Arcelik, parent of the Beko and Blomberg appliance brands, for about $231 million.
The sale includes all of Whirlpool’s Russian resources, including its sales organization in Moscow, its manufacturing site in Lipetsk — which at one point was producing refrigerators for 90 different brands — and its sales operations in Kazakhstan and other former Soviet republics.
Whirlpool said the sale was prompted by “the current operating environment in Russia” and considers it “the best course of action” for its employees, shareholders and overall business. It anticipates a loss of between $300 million and $400 million in the current quarter in connection with the transaction.
Under terms of the agreement, Arcelik will pay for the purchase over a ten-year period following the close of the sale in the third quarter, and will continue to manufacture appliances at the Lipetsk facility under the Hotpoint, Indesit and Stinol brands.
Founded in 1955, the Turkish appliance and retail giant operates in 146 countries under 12 different brands including the sleek and tech forward Beko and Blomberg kitchen and laundry lines.
