Emerson To Sell InSinkErator Business To Whirlpool For $3.0 Bln

(RTTNews) - Emerson (EMR), on Monday, said it has agreed to sell its InSinkErator business to Whirlpool Corp. (WHR) for $3.0 billion.

The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close in Emerson's 2023 fiscal year. Emerson will work closely with Whirlpool to help ensure a smooth transition for customers and InSinkErator's nearly 1,400 employees.

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.

In a separate statement, Whirlpool stated that the acquisition is expected to be immediately accretive to its margins, adding about $1.25 EPS accretion in fiscal 2023.

Whirlpool also expects to generate revenue upside by capitalizing on InSinkErator's "consumer brand preference, an installed base that is fives times larger than the rest of the industry driving a recurring sales profile, the strong underlying secular tailwinds of the U.S. housing market, and the expansion of the InSinkErator brand into new markets and product offerings."