Whirlpool has recently entered into a sales agreement to purchase InSinkErator garbage disposer business. Pending regulatory approvals, the all-cash $3 billion dollar transaction is expected to close the fourth quarter of 2022.
InSinkErator is one of the first mass-produced garbage disposal products for home use that started in 1930 and has dominated the food waste disposal industry. It currently has a 70% plus market share. It makes food waste disposers that are integrated into kitchen sinks which helps to breakdown garbage that eventually flows to wastewater treatment plants or septic systems.
Both companies’ boards have approved the sale and Whirlpool plans for InSinkErator to continue operating as a separate business unit under the aegis of its North America Region. They will also maintain the Mount Pleasant, WS headquarters.
Founded by John W. Hammes architect/inventor, InSinkErator grew during the post-World War II housing boom and in 1968 it was acquired by Emerson Electric. By the 1970s it was producing half of all the garbage disposal units sold worldwide, and is currently the largest manufacturer of food waste disposers and instant hot water dispensers for home and commercial use.
InSinkErator is an iconic brand with a high quality and performance reputation. The company is said to generate approximately $650 million in sales for the 12 months ended Sept. 30, 2022, and earnings before interest, taxes, depreciation and amortization (EBITDA) of more than $170 million.
Marc Bitzer, Whirlpool Chairman/CEO was quoted in the deal, “We are excited for the unique opportunity to add InSinkErator to our portfolio of leading brands,” The acquisition is a clear accelerator of our ongoing portfolio transformation and aligned with our stated goals of investing in high-growth and high-margin businesses and Win Americas.”
Whirlpool will initially fund the acquisition through available liquidity, to be supplemented by the assumption of new debt at a later date.
