The definitive contribution agreement between Arçelik’s wholly owned subsidiary, Beko B.V. and Whirlpool Corporation’s wholly owned subsidiary, Whirlpool EMEA Holdings LLC has successfully been completed, marking the creation of Beko Europe.
It also completes the definitive agreement for Arçelik to acquire full ownership of Whirlpool’s Middle East and North Africa (MENA) operations in a separate transaction.
Based on production volumes in 2023, the combined share of Whirlpool’s European major domestic appliance business and Arçelik’s major domestic appliance, consumer electronics, air conditioning and small domestic appliance businesses (Beko Europe) is the largest in Europe, according to Euromonitor Passport Trade Statistics.
Beko Europe has more than 20,000 employees and a production capacity of approximately 24 million home appliance products per year across 11 production sites. 75% of the newly formed company is owned by Beko B.V and 25% by Whirlpool Corporation, subject to closing adjustments.
Globally, Arçelik will now have operations across 57 markets with around 55,000 employees. The combined revenue of Arçelik reaches approximately 11 billion Euro based on 2023 results. Annual production capacity will also significantly increase with a total of 45 production facilities.
Commenting on the closing of the transactions, Arçelik CEO, Hakan Bulgurlu (feature image) said, “We set clear targets to grow our business and transform our industry over the last 10 years, all while delivering value for our consumers, our customers, our employees and our shareholders.
“Our growth has been propelled by considered acquisitions and ground-breaking joint ventures with leading businesses such as Singer in Bangladesh and Hitachi in Asia. The creation of Beko Europe and acquisition of Whirlpool’s MENA assets marks yet another pivotal milestone in Arçelik’s journey and our 10th year of continuous growth.
“As one of the global leaders, with strong positions in mature and high growth markets, we reinforce our ability to be a force for progress and change, in service of planet and people.”
Whirlpool Corporation chairman and CEO, Marc Bitzer added, “We are pleased to achieve this significant moment in completing our transaction with Arçelik to form Beko Europe. This milestone begins an exciting new chapter in creating greater value for European consumers through attractive brands, sustainable manufacturing, product innovation and consumer services. We look forward to the considerable opportunities Beko Europe will unlock for consumers in the constant pursuit of improving life at home.”
Beko Europe CEO, Ragıp Balcıoğlu (above) commented, “This marks the beginning of Beko Europe’s journey to establish sustainable living in every home in Europe. By combining our respective footprints, we achieve scale, now we must work tirelessly to ensure this scale serves the needs of our customers and consumers.
“We will be a responsible partner to the industry and consumers, actively using our market leading position to raise standards, address efficiency, and drive innovation in the pursuit of a better future. By understanding our customers’ and consumers’ changing needs, we aim to power the European household appliance industry forward to a brighter, more competitive, and eco-friendly landscape. Our exceptional and highly complementary teams will be critical in delivering against this ambition.”
Commenting on the transaction from the APAC region, Arçelik CCO APAC and Arçelik Hitachi Home Appliances CEO, Zafer Ustuner (above) said,“This marks an important milestone for our newest company, Beko Europe. With our growing family, we will unlock new opportunities in our industry, not only in Europe but in all geographies where we operate, as we raise standards, address productivity and efficiency, and drive innovation and sustainability forward.”
From a local perspective, Beko managing director for Australia and New Zealand said, “Integrating the European operations of Beko and Whirlpool creates one of the world’s biggest, and Europe’s largest, appliance businesses with the scale in R&D, purchasing and manufacturing to create more innovative, sustainable and competitive products for ever more challenging markets like ours.
“Beko ANZ is absolutely focused on growing Beko and Hitachi branded home appliances in Australia and New Zealand. Building brands in consumer durable markets takes years, and we are proud that Beko is now in its second decade here with well over one million Beko appliances in homes and a solid foundation on which to further build.
“Our European heritage is now even more substantial, and Beko offers the most expansive and competitive European production sources. Coupled with Japanese technology, innovation and quality, inherent in our Hitachi home appliance business, Beko has a substantial platform to continue its growth globally.”