Whirlpool Corporation To Become Majority Shareholder Of China-Based Hefei
Accelerating growth in China's emerging market
BENTON HARBOR, Mich., Aug. 13, 2013
BENTON HARBOR, Mich., Aug. 13, 2013 /PRNewswire/ --Whirlpool Corporation
[NYSE: WHR] today announced that it has entered into agreements to become a
majority shareholder (51 percent) in Hefei Rongshida Sanyo Electric Co. Ltd.
[600983: Shanghai], a leading home appliances manufacturer based in Hefei,
(Logo: http://photos.prnewswire.com/prnh/20040202/DETU004LOGO )
Through this transaction, a Whirlpool Corporation subsidiary will acquire all
shares currently owned by Sanyo Electric Co. Ltd. and Sanyo Electric Co.
(China) Ltd., and purchase new Hefei Sanyo shares via a private placement.
The transaction is subject to customary conditions, certain termination
rights, Chinese regulatory approval, and Hefei Sanyo shareholders' approval.
After the transaction is approved, Whirlpool will acquire a majority stake in
Hefei Sanyo for approximately RMB 3.4 billion/USD 552 million cash, based on
the exchange rate as of August 9, 2013. The transaction is expected to close
by the end of 2014. Whirlpool expects that this transaction will be accretive
in the first full year of integration.
"Whirlpool has a strong presence in China's higher tier segments, this
acquisition allows the company to build on, complement, and grow its position
in the emerging Chinese market and to leverage our global enterprise for
greater efficiencies," said Jeff Fettig, CEO and Chairman of Whirlpool
Corporation. "As the leading global manufacturer and marketer of major home
appliances, we will leverage the technology capabilities of Hefei Sanyo and
provide the investments to enhance Hefei Sanyo's research and development and
product innovation capabilities. This will give Chinese consumers a broader
range of innovative, high-quality products through our combined trusted
portfolio of brands."
Mike Todman, president of Whirlpool International, added: "Hefei Sanyo has an
established nationwide distribution platform, a scaled manufacturing presence
with opportunity for growth, and is ideally located in Hefei, a recognized
appliance hub in China. Hefei Sanyo is a well-managed, profitable business
with great prospects, led by an experienced and capable executive team with a
track record of delivering strong performance. "
For additional information about the transaction, see Whirlpool Corporation's
Current Report on Form 8-K dated August 12, 2013.
Whirlpool Corporation's earnings and cash flow outlook for the full-year 2013
remain unchanged from the last update contained in its earnings release dated
July 19, 2013.
About Whirlpool Corporation
Whirlpool Corporation is the world's leading manufacturer and marketer of
major home appliances, with annual sales of approximately $18 billion in 2012,
68,000 employees, and 65 manufacturing and technology research centers around
the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana,
Brastemp, Consul, Bauknecht and other major brand names to consumers in nearly
every country around the world. Additional information about the company can
be found at http://www.whirlpoolcorp.com.
Hefei Sanyo: Corporate Fact sheet
oYear established: 1994
oHeadquarters: Hefei, Anhui Province
oCorporate Structure: A joint venture between former Hefei Rongshida Group
Co., Ltd and Sanyo Electric Co., Ltd., and Sanyo Electric (China) Co.,
Ltd., a subsidiary of Panasonic Corporation [TSE: 6752]
oFinancials: Hefei Sanyo reported revenue of $636 million, EBIT of $51
million, EBITDA of $59 million, and net earnings of $48 million for full
year 2012. They reported revenue of $204 million, EBIT of $19 million,
and net earnings of $17 million for Q1 2013.
oNumber of employees: 10,000
oChairman: Jin Youhua
oMain Brands: Sanyo, Rongshida /Royal Star and Diqua
oMain Products: washer, refrigerator, microwave oven
oNumber of manufacturing bases: three
oSales networks: large nationwide distribution network
oListing: Listed on the Shanghai Stock Exchange since July 2004 (Ticker:
oMajor shareholders: Hefei State-owned Assets Holding Co., Ltd (33.57%),
Sanyo Electric Co., Ltd. and affiliated companies (29.51%)
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release relating to the acquisition of shares
of Hefei Sanyo and Whirlpool's 2013 outlook constitute "forward-looking
statements" within the meaning of the federal securities laws. These
statements reflect management's current expectations regarding future events
and speak only as of the date of this press release. Forward-looking
statements involve significant risks and uncertainties, should not be read as
guarantees of future performance and will not necessarily be accurate
indications of whether or not, or the times at or by which, events will occur.
Actual performance may differ materially from that expressed or implied in
such statements. Important factors that could cause actual results to differ
materially from these expectations include, among other things:
othe expectation that closing conditions for the share acquisition and the
private placement including all regulatory approvals will be met;
othe expectation that the termination rights will not be exercised by the
othe expectation that the transaction will be approved by shareholders of
othe expectation that the share acquisition and the private placement will
close by the end of 2014;
othe expectation that the aggregate purchase price for the share
acquisition and the private placement will be approximately RMB 3.4
billion (USD 552 million based on the exchange rate as of August 9, 2013),
subject, in each case, to certain adjustments if dividends are paid on the
Hefei Sanyo shares;
othe expectation that Whirlpool will have sufficient cash on hand or
through other public or private debt financing depending on the timing of
the closing and market conditions to finance the share acquisition and
othe expectation that Whirlpool will realize the expected benefits of the
share acquisition and the private placement and the timing of such
oany unexpected costs or liabilities in connection with the share
acquisition and the private placement; and
othe expectation that Whirlpool will achieve its outlook for the full year
In addition to the assumptions described above, reference should also be made
to the factors discussed under "Risk Factors" in Whirlpool Corporation's
periodic filings with the Securities and Exchange Commission. Although the
forward-looking statements contained in this press release are based upon what
are believed to be reasonable assumptions, investors cannot be assured that
actual results will be consistent with these forward-looking statements, and
the differences may be material. These forward-looking statements are made as
of the date of this press release and, except as expressly required by
applicable law, Whirlpool Corporation assumes no obligation to update or
revise them to reflect new events or circumstances.
SOURCE Whirlpool Corporation
Contact: China: Brunswick Group, Poling Cheung / Ilse Schache, Tel: +86 (21)
6039 6388, Email: email@example.com; or USA: For media
inquiries: Whirlpool Corporation Press Office, Tel: +1 (269) 923 7405, Email:
Media@Whirlpool.com or For investors: Joseph Lovechio, Tel: +1 (269) 923 2641,
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