The European subsidiary of Whirlpool (Benton Harbor, Michigan, USA; www.whirlpool.com) is selling its Russian activities to leading Turkish white goods manufacturer, Arcelik (Istanbul; www.arcelikas.com) for the purported price of EUR 220 mn. The deal is expected to close in the third quarter of 2022. The US group expects the deal to result in a book loss of USD 300 mn-USD 400 mn in the second quarter of 2022.

The transaction includes a plant for refrigerators and washing machines of the Stinol, Indesit, and Hotpoint brands in Lipetsk, Russia, with a capacity of 2.8 mn units, as well as a distribution company in Moscow with a combined workforce of 2,500. The equipment is sold not only in Russia, but also in a majority of CIS countries and Mongolia.

A year ago, Arcelik had already acquired the two plants of the Turkish subsidiary Whirlpool Beyaz Eşya Sanayi ve Ticaret Anonim Şirketi for EUR 78 mn. The capacity of the Manisa-based plant at the time was 2.7 mn refrigerators and washing machines.

Turkey is the world’s second-biggest white goods producer after China, and Europe’s largest. According to data from national white goods manufacturers association Turkbesd (Istanbul; www.turkbesd.org), in the first quarter of 2022, domestic sales declined 9% while exports increased 6% versus the previous year. In 2021, Turkish white goods sales reached 34.4 mn units.