Arçelik and Whirlpool are joining forces to create a new standalone business in the European home appliances market.
Arçelik’s wholly owned subsidiary, Ardutch B.V and Whirlpool’s wholly owned subsidiary, Whirlpool EMEA Holdings have signed a definitive contribution agreement, which will see both Ardutch and Whirlpool transfer their European subsidiaries to the new company.
The companies will combine their manufacturing expertise, European appliance brands, supply chains, distribution and sales networks, product pipelines, and commitment to sustainability and innovation to create additional value for consumers.
The agreement includes Whirlpool’s 38 European subsidiaries and nine production sites located in Italy, Poland, Slovakia, and the UK, as well as Arçelik’s two production facilities in Romania and 25 European subsidiaries, resulting in a combined production capacity of approximately 24 million products per year.
The company will manufacture, sell, and provide after-sales service for branded home appliances from Arçelik including Grundig, Arctic, Elektrabregenz, Flavel, and Leisure, alongside Whirlpool’s existing brands of Indesit, Hotpoint, Ignis, Privileg, and Bauknecht.
The company will also have regional brand rights for the Beko, Blomberg and Altus brands of Arçelik and the Whirlpool brand of Whirlpool Corporation for a period of 40 years.
Koç Holding, Arçelik’s parent company, CEO, Levent Çakıroğlu said, “As the largest industrial conglomerate of Turkey, we continue to strengthen our impact with global success stories ranging from the UK to India, from South Africa to the US, exporting to more than 150 countries.
“Arçelik is carrying its vision and ambitions much further with this new standalone business. There is a significant opportunity for this business to deliver value to European consumers with market-leading products via trusted brands and a commitment to sustainability.”
Koç Holding group president of consumer durables, Fatih Kemal Ebiçlioğlu added: “Koç Holding aims to be a global leader across all operational areas. Arçelik, a business at the forefront of its industry, is an outstanding example of a company pursuing a clear global vision within our group. I am confident that we will continue to create value for consumers, investors, and employees.”
Arçelik CEO, Hakan Bulgurlu commented, “This is a unique opportunity for two exceptional companies to come together with a focus on synergies, combined innovation, retail distribution, and sustainability and is consistent with our stated strategy. With this agreement, we are creating a strong foundation to drive value creation for employees, shareholders, and European consumers of white goods, extending Arçelik’s footprint with new growth opportunities in an important region.”
Image caption: Koç Holding group president of consumer durables, Fatih Kemal Ebiçlioğlu, Whirlpool Corporation CEO, Marc Bitzer and Arçelik CEO, Hakan Bulgurlu.