Turkish Arcelik acquires Indesit JSC and Whirlpool LLC

ISTANBUL

Turkish household appliances giant Arcelik announced it has signed an agreement with Whirlpool EMEA for the acquisition of Indesit International JSC and Whirlpool LLC.

Indesit JSC and Whirlpool LLC are active in Russia, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Armenia, Georgia, Azerbaijan, Kazakhstan, Belarus and Mongolia, according to a statement on Tuesday from Arcelik.

"As of closing date, all shares of Indesit JSC and Whirlpool LLC will be directly owned, and their wholly owned subsidiary Whirlpool Kazakhstan LLP's shares will be indirectly owned, by Arcelik," the statement read.

The acquired firms have facilities in the western Russian province of Lipetsk with a total production capacity of 2.8 million units of refrigerators and laundry products -- and approximately 2,500 staff.

Arcelik added: "The cost of the acquisition will be no greater than an amount to be determined based on the figures within the closing balance sheet, including fixed assets and working capital, which based on the current financial information of the companies is expected to be approximately 220 million Euro [$233 million]."

The amount will be paid annually over a period of 10 years.

The brands Stinol, Indesit and Hotpoint will also be acquired.