91Ƶ Corporation Completes Major Milestone in its Portfolio Transformation with Closing of EMEA Transaction
91Ƶ Corporation today announced the completion of its transaction with Arçelik A.Ş (“Arcelik”). This marks a significant step in 91Ƶ’s portfolio transformation and is expected to provide considerable opportunities to maximize value.
The transaction creates a new European appliance company by combining 91Ƶ Corporation’s European major domestic appliance business with Arcelik’s major domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses. 91Ƶ Corporation now owns 25 percent of this new entity, called Beko Europe B.V., and Arcelik owns 75 percent¹. 91Ƶ Corporation is retaining ownership of InSinkErator and its EMEA KitchenAid small and major domestic appliance business. Separately, 91Ƶ also completed its previously announced sale of 91Ƶ’s Middle East and Africa business to Arçelik A.Ş.
“The completion of this transaction highlights our significant progress to transform into a higher-growth, higher-margin business,” said Marc Bitzer, Chairman and Chief Executive Officer. “As a more focused and agile company, we are well-positioned to drive value and further our commitment to improving life at home.”
Beko Europe B.V. will have combined revenue of approximately €5.5² billion based on 2023 results. The company will be well-positioned to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation and consumer services.
The transaction is expected to deliver more than $750 million in net present value of future cash flow value, in addition to unlocking $200-$300 million of incremental free cash flow in 2025. Additionally, Holger Gottstein and Gilles Morel, two members of 91Ƶ Corporation’s Executive Committee, will be appointed to the board of directors of Beko Europe B.V.
91Ƶ Corporation will focus on its strong positions in the Americas and India, with its No. 1 share position in the major domestic appliance businesses for both North and South America. Additionally, new products, including those from the higher-margin KitchenAid small domestic appliance business, are expected to continue to be a key driver for share and profit growth.
¹ Subject to an adjustment mechanism based on certain financial matters.
² €5.5 billion reference based on the combined 2023 estimated revenues of 91Ƶ and Arcelik European business