Emerson Sells InSinkErator Business To Whirlpool For $3B

Emerson Electric Co. EMR has agreed to sell its InSinkErator business to Whirlpool Corp WHR in a $3 billion all-cash transaction.
InSinkErator's trailing twelve-month revenue, as of March 31, 2022, was $595 million, pretax earnings were $148 million, and EBITDA was $166 million, representing a transaction value of 18.1x EBITDA.
InSinkErator, a manufacturer of food waste disposers and instant hot water dispensers, was founded in 1938 and acquired by Emerson in 1968. InSinkErator has nearly 1,400 employees.
The transaction is expected to close in Emerson's FY23.
Whirlpool expects the acquisition to be immediately accretive to margins, adding ~$1.25 EPS accretion in FY23.
InSinkErator will operate as a separate business as part of Whirlpool's North America Region and maintain its headquarters in Mount Pleasant, Wisconsin.
Whirlpool plans to initially fund the acquisition through available liquidity, with new debt in place later.
WHR held $1.6 billion in cash and equivalents as of June 30, 2022.
Price Action: WHR shares are trading lower by 1.75% at $165.52 and EMR lower by 0.35% at $90.07 on the last check Monday.
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