Interested in “KitchenAid” company?
Bosch is considering one of the largest takeovers in history
26.06.2024, 16:39
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According to a media report, Bosch is considering taking over a US household appliance manufacturer. Whirpool is best known for its “KitchenAid” machines. Both companies remained tight-lipped when asked. However, the purchase would fit with comments made recently by Bosch CEO Hartung.
According to insiders, the Stuttgart-based auto supplier Robert Bosch is considering taking over the US home appliance manufacturer Whirlpool. Bosch is interested in the company, which is known for its “KitchenAid” kitchen appliances, said three people familiar with the plans. Bosch could use this to strengthen its subsidiary BSH Hausgeräte with its brands Neff, Gaggenau and Siemens. The Stuttgart-based company has already spoken to consultants, one of them added. However, it is not certain that an offer will actually be made, said the insiders.
Whirlpool would be one of the biggest takeovers for Bosch. The US company was valued at 4.8 billion dollars on the New York Stock Exchange at Tuesday’s closing price. A Bosch spokesman declined to comment on the information: “We generally do not comment on market rumors.” Whirlpool made a similar statement.
Bosch’s plan caused euphoria among investors. Whirlpool shares jumped 17.5 percent before the market opened. Within two years, they have lost half their value. Shares in Swedish competitor Electrolux (AEG, Progress, Zanker), which had lost 35 percent after the end of the Corona boom, rose 4.5 percent during the day.
“This is a huge market, Bosch has to deliver”
The purchase of Whirlpool would fit in with statements made by Bosch CEO Stefan Hartung. He has committed himself to growth in the USA outside of the core business with the automotive industry. “Our strategic goal is to expand business worldwide, especially in the USA and in the non-automotive sector,” Hartung said recently. The USA is underrepresented in Bosch’s portfolio. “It’s a huge market, and Bosch has to deliver there.” He suggested that Bosch could also take subsidiaries public to finance takeovers.
Whirlpool is in the middle of restructuring. The US group sold the majority of its European business to Turkish rival Arcelik last year and now only holds 25 percent. It has completely separated from its subsidiaries in Africa and the Middle East. The Arcelik subsidiary Beko now also owns the Bauknecht brand, which is popular in Germany. Of the 19.5 billion dollars in sales that Whirlpool generated in 2023, around 2.6 billion will be lost. The operating result (EBIT) was 1.2 billion dollars. In addition to “white goods” such as washing machines and refrigerators, Whirlpool has been increasingly focusing on small appliances such as espresso machines for several years. The kitchen appliances sold under the “KitchenAid” brand in Europe will continue to come from Whirlpool.
The Munich-based Bosch subsidiary BSH Hausgeräte, with brands such as Gaggenau, Neff, Siemens and Bosch, had a turnover of 14.8 billion euros last year with around 60,000 employees. In North America, business fell by more than ten percent due to the discount war raging there.