Whirlpool to Sell Russia Business to Arcelik

By Will Feuer

Whirlpool Corp. said it has agreed to sell its Russia business to Turkish household appliances maker Arcelik A.S. for deferred payments, becoming the latest multinational company to announce plans to divest its Russia business following the country's invasion of Ukraine.

The company expects to record a loss of $300 million to $400 million during the second quarter of 2022 due to the deal.

The sale includes Whirlpool's manufacturing site in Lipetsk, Russia, and its sales organization in Moscow, as well as sales operations in Kazakhstan and other select countries within the Commonwealth of Independent States.

The deferred payments are expected to be made over a ten-year period and are subject to a cap based on the net asset value of the business as of closing, which is currently estimated at about 220 million euros, or roughly $233 million. The sale is expected to be finalized in the third quarter of 2022.

"The company, as a U.S. company, is taking this action given the current operating environment in Russia and has concluded the agreement to be the best course of action for its employees, shareholders and overall business," Whirlpool said in a securities filing.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

June 28, 2022 07:30 ET (11:30 GMT)

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