Whirlpool Plans to acquire 49% in Elica PB

American white goods maker Whirlpool has announced to acquire 49% in kitchen hood and cooking equipment maker Elica PB India for Rs 180 crore in an all-cash deal, as per a notice sent to stock exchanges.

According to Whirlpool the investment is in line with its strategic priority to expand the cooking and built-in appliance portfolio. As part of the deal, Elica PB India will manufacture and distribute cooking and built-in appliances under the Whirlpool brand in India.

Elica PB India is a subsidiary of Elica SpA Italy and has been operating in India since 2010. The company did sales of Rs 138 crore in the fiscal ending March, 2017.

As per the stock exchange notice, Whirlpool India's holding company Whirlpool Corporation holds 12.5% shareholding in Elica S.p.A., the parent company of Elica India. Part of the shares proposed to be acquired by Whirlpool India will be from Elica S.p.A. and the transaction is at arm’s length basis, as per the notice.

The transaction is expected to close in the second half of 2018, as per a media release. The parent companies of both the Indian entities will be filing for regulatory approvals outside India.

Sunil D’Souza, managing director of Whirlpool India said the cooking and built-in appliance space is poised for very strong growth in India based on increasing consumer demand.

"Whirlpool aims to expand its portfolio of innovative products with Elica’s impressive capabilities in consumer insights, design, and manufacturing and also broaden its distribution. This association will bring outstanding product innovation and provide more options to the kitchens of our consumers," said D’Souza.

Pralhad Bhutada, CEO of Elica PB India said the company has built a very strong product portfolio and distribution network for the Elica brand.

"With the addition of Whirlpool products, we will be offering two very appealing appliance brands to the Indian consumers and we are confident that we can take both these brands to greater heights," he said.

Bhutada will continue as the CEO of Elica India and Elica India will continue to be a subsidiary of Elica S.p.A after the deal is finalized.