Mount Pleasant-based InSinkErator
, a manufacturer of food waste disposers and instant hot water dispensers for home and commercial use, will be acquired by Benton Harbor, Michigan-based home appliance manufacturer Whirlpool Corp.
in a $3 billion all-cash transaction announced Monday. The deal is expected to close in the fourth quarter of 2022.
InSinkErator’s parent company, St. Louis-based Emerson Electric Co.
, described the sale as a move marking its “continued commitment to creating a higher growth, more diversified and cohesive portfolio.”
InSinkErator has nearly 1,400 employees and an international presence spanning 80 countries. The company’s Mount Pleasant headquarters will remain open. Racine County provided a $4.65 million loan for the company to bring its headquarters to Mount Pleasant back in 2017
and the village provided $600,000 in tax incremental financing.
InSinkErator is expected to continue operating as a business within Whirlpool's North America Region. The company has not publicly disclosed the percentage of manufacturing it does in the U.S, but it is the only brand of food waste disposer invented, designed and assembled in the country.
Whirpool officials declined to say whether any layoffs are expected following the acquisition, but did say in a press release that future “synergies” between the companies are expected. Whirlpool has about 69,000 employees worldwide and nine manufacturing sites across the U.S.
"We are excited for the unique opportunity to add InSinkErator to our portfolio of leading brands. The acquisition is a clear accelerator of our ongoing portfolio transformation and aligned with our stated goals of investing in high-growth and high-margin businesses," said Marc Bitzer, chairman and CEO of Whirlpool. "InSinkErator is not only an iconic brand with a reputation for the highest quality and performance, but also a business that is purpose-driven and shares our vision of improving life at home. We look forward to capitalizing on the significant growth opportunities we see for this business."
On a full-year basis, ending Sept. 30, 2022, InSinkErator is expected to generate sales of approximately $650 million and EBITDA in excess of $170 million.
Whirlpool plans to initially fund the acquisition through available liquidity, with new debt put in place later.