BENTON HARBOR, MI – Whirlpool, a home appliance manufacturer headquartered in Benton Harbor, plans to sell its Russian operations.
The deal with Istanbul-based appliance company Arçelik A.Ş. includes Whirlpool’s manufacturing site in Lipetsk, Russia, the sales organization in Moscow and sales operations in Kazakhstan and other Eastern European countries.
“The Company is taking this action given the current operating environment in Russia and has concluded the agreement to be the best course of action for its employees, shareholders and overall business,” Whirlpool said in a Tuesday statement.
Under the purchase agreement, Arçelik will make deferred payments for 10 years capped at the current estimated €220 million, or roughly $231 million, value of the business.
Whirlpool expects to lose between $300 and $400 million in the second quarter due to the sale, according to a June 27 filing with the U.S. Securities and Exchange Commission.
Related: Four Michigan companies join exodus withdrawing from Russia while others remain
The sale is expected to be finalized in the third quarter of 2022 following regulatory approvals and other conditions. At that point, Whirlpool will no longer have any manufacturing operations in Russia.
Major corporations like McDonald’s, Starbucks, Shell and Heineken have also fully exited Russia since the war in Ukraine began in February.
More than 1,000 companies, including some from Michigan, have at least paused operations in Russia.
Whirlpool limited its Russian production to provide only “essential goods” for families who needed their products to “clean, cook and provide proper food and medicine storage in their homes,” the appliance giant said in a March statement.
Ford Motor Company suspended its Russian operations while General Motors halted business to Russia. Amway, a global health, beauty and home care multi-level marketing company, suspended its product imports. And Little Caesars pizza froze newly opened franchises.
Meanwhile, Kalamazoo-based Stryker has continued sales and imports to Russia, according to Yale University researchers.
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Whirlpool to exit Russia costing the Michigan company up to $400M - MLive.com
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