Whirlpool of India Ltd. (NSE: Whirlpool; BSE: 500238) today announced that it has entered into a share purchase agreement with Elica S.p.A (MTA: ELC) to acquire an additional stake in Elica PB India. Elica PB India will become a majority-owned subsidiary of Whirlpool India and its financial statements will be consolidated within Whirlpool India. The transaction is expected to close by the end of September 2021. Both organizations will continue to run their operations similar to their current state.
Whirlpool India currently owns a 49% stake in the Elica PB India Private Limited and will acquire an additional ~38% equity interest for US$57 million to bring its total equity ownership to ~87%. Whirlpool India initially acquired a 49% equity interest in Elica PB India in 2018.
"We are very excited about this transaction and it is aligned with our ambition to accelerate profitable growth in India," said Vishal Bhola, Managing Director, Whirlpool India. "Cooking and built-in appliances are under-penetrated categories and the demand has now accelerated with consumers picking up cooking as a passion and investing more in their kitchens. Our consumers have always been at the heart of our business and now with both Elica and Whirlpool brands, we are in an even better position to improve life at home for them."
Speaking about the transaction, Pralhad Bhutada, CEO and Director of Elica PB India said, "Over the last decade, Elica PB India has built a very strong product portfolio and distribution network in India, which it has been harnessing for the last three years to build both the Elica and Whirlpool brands in the cooking category. I am confident that with our continued relationship, we will offer consumers a more comprehensive range of innovative, premium cooking solutions for both brands."
Whirlpool is an iconic brand and one of the industry leaders in laundry and refrigeration in India. Elica is renowned for its attention to aesthetics, innovation and quality in product development and diverse insights of consumers' cooking needs. Since the beginning of the joint venture, Elica PB India also brought their strong distribution network and made Whirlpool cooking products widely accessible in the marketplace. Together Whirlpool India and Elica PB India create value and synergy offering relevant cooking and built-in solutions to make consumers' lives easier and they can spend more time taking care of their families.
Shares of Whirlpool of India Ltd was last trading in BSE at Rs. 2237 as compared to the previous close of Rs. 2250.5. The total number of shares traded during the day was 8025 in over 1391 trades.
The stock hit an intraday high of Rs. 2273.2 and intraday low of 2227.3. The net turnover during the day was Rs. 18074198.