Turkish household appliances and consumer electronics manufacturer Arçelik has agreed to buy Whirlpool's remaining 25% stake in Beko Europe for 71.5 million euros ($82 million), taking full ownership of the unit as it simplifies its partnership with the U.S. group.
The move follows Arçelik's April 2024 acquisition of Whirlpool's European operations, after which the U.S. company retained a minority stake in Beko Europe.
Arçelik said a shareholder agreement with Whirlpool had been terminated, but the existing brand licensing agreement would remain in place.
In a separate deal, Arçelik sold shares equal to 2.9% of its capital – previously acquired through a buyback program – to Whirlpool for TL 2 billion ($44 million). The sale price of TL 103.71 per share was at a slight discount to the previous close.
The company also said it had completed all payment obligations related to its 2022 acquisition of Indesit and Whirlpool's operations in Russia, with a final payment of 40 million euros.
Structure simplified
Cemal Demirtaş, general manager for research at Istanbul-based Ata Invest, said the transactions are expected to result in a net cash outflow of around 70 million euros, while generating a one-off contribution of 100 million euros to 110 million euros to other operating income.
"We view these steps as positive in terms of simplifying the structure and supporting debt management," Demirtaş said.
He said Arçelik had a market value of about $1.5 billion and net debt of roughly $3.7 billion as of the first quarter, adding that recent asset sales point to a focus on deleveraging.
However, operational pressures remain.
"Both domestic and international operations are still facing challenges in terms of growth and profitability. A recovery in demand and margins is critical to strengthen cash flow and reduce leverage," Demirtaş said. "Otherwise, high debt levels could continue to weigh on the stock."
Arçelik shares were up 0.1% at 10:01 a.m. GMT.
