Arçelik Announces Contribution Agreement to Form a New Standalone European Home Appliance Business with Whirlpool

• The newly formed standalone business will combine both companies' European manufacturing expertise, strong supply chains, effective distribution and sales networks and innovative product pipelines to create additional value for European consumers
• The new company will draw together approximately 20,000 employees across multiple European countries and many of the sector's best-known brands
• The combined net revenue is approximately EUR 6 billion, based on the net sales of the companies' European operations in 2021.
• Innovation and sustainability leadership will be at the centre of the new entity's strategy

ISTANBUL, Jan. 17, 2023 /PRNewswire/ -- Arçelik's wholly owned subsidiary Ardutch B.V and Whirlpool Corporation's wholly owned subsidiary Whirlpool EMEA Holdings LLC have signed a definitive Contribution Agreement for the creation of a new standalone business in the European home appliances sector.

The agreement will see both Ardutch and Whirlpool transfer their European subsidiaries to the new company. After these transfers, it is expected that 75 per cent of the newly formed company will be allocated to Ardutch B.V. and 25 per cent to Whirlpool. The final post-closing ownership ratio will be determined after taking into account respective 2022 EBITDA, net asset values, net indebtedness and net working capital of the parties.

The new standalone business will combine both companies' manufacturing expertise, European appliance brands, strong supply chains, effective distribution and sales networks, and innovative product pipelines to create additional value for their consumers by positioning the new company for growth.

The new business will also build upon both companies' strong track record in, and commitment to, sustainability and innovation, providing European consumers with better access to high quality, energy-efficient and trusted lifestyle products and solutions.

Levent Çakıroğlu, CEO of Koç Holding (Arçelik's parent company), commented, "As the largest industrial conglomerate of Turkey, we continue to strengthen our impact with global success stories ranging from the UK to India, from South Africa to the USA. Today, Koç Group companies export to more than 150 countries. Arçelik, as a respected player in its industry, is carrying its vision and ambitions much further with this new standalone business. The opportunity for this business to deliver value to European consumers with market-leading products via trusted brands and a commitment to sustainability in the home is significant."