Tuesday 2nd April 2024 marked the definitive Contribution Agreement between Arçelik’s wholly owned subsidiary Beko B.V. and Whirlpool Corporation’s wholly owned subsidiary Whirlpool EMEA Holdings LLC, and the creation of Beko Europe.
The closing also completes the definitive agreement for Arçelik to acquire full ownership of Whirlpool’s Middle East and North Africa (MENA) operations in a separate transaction.
Based on production volumes in 2023, the combined share of Whirlpool’s European major domestic appliance business and Arçelik’s major domestic appliance, consumer electronics, air conditioning and small domestic appliance businesses, i.e. Beko Europe, is the largest in Europe[1]. Beko Europe has more than 20,000 employees and a production capacity of approximately 24 million home appliance products per year across 11 production sites. 75% of the newly formed company is owned by Beko B.V and 25% by Whirlpool Corporation.*
Globally, Arçelik will now have operations across 57 markets with around 55,000 employees. The combined revenue of Arçelik reaches approximately 11 billion EUR based on 2023 results.** The company’s annual production capacity will also increase significantly as the total number of production facilities reaches 45.
Photo: Hakan Bulgurlu, CEO of Arçelik
Commenting on the closing of the transactions, Hakan Bulgurlu, CEO of Arçelik said: “We set clear targets to grow our business and transform our industry over the last ten years, all while delivering value for our consumers, our customers, our employees and our shareholders. Our growth has been propelled by considered acquisitions and ground-breaking joint ventures with leading businesses such as Singer in Bangladesh and Hitachi in Asia.
“The creation of Beko Europe and acquisition of Whirlpool’s MENA assets, marks yet another pivotal milestone in Arçelik’s journey and our tenth year of continuous growth. As one of the global leaders, with strong positions in mature and high growth markets, today we reinforce our ability to be a force for progress and change, in service of planet and people.”
In addition, Marc Bitzer, Chairman and CEO, Whirlpool Corporation, said: “We are pleased to achieve this significant moment in completing our transaction with Arçelik to form Beko Europe. This milestone begins an exciting new chapter in creating greater value for European consumers through attractive brands, sustainable manufacturing, product innovation and consumer services.
“We look forward to the considerable opportunities Beko Europe will unlock for consumers in the constant pursuit of improving life at home.”
Photo: Ragip Balcioglu, CEO of Beko Europe
CEO of Beko Europe Ragıp Balcıoğlu, commented: “Today is the first day in Beko Europe’s journey to establish sustainable living in every home in Europe. By combining our respective footprints, we achieve scale, now we must work tirelessly to ensure this scale serves the needs of our customers and consumers. We will be a responsible partner to the industry and consumers, actively using our market leading position to raise standards, address efficiency, and drive innovation in the pursuit of a better future.
“By understanding our customers’ and consumers’ changing needs, we aim to power the European household appliance industry forward to a brighter, more competitive, and eco-friendly landscape. Our exceptional and highly complementary teams will be critical in delivering against this ambition.”
* Subject to closing adjustments
** 11 billion Euro reference based on the combined estimated revenues of Arçelik and Whirlpool EMEA as of 2023
*** Licensee limited to certain jurisdictions
