EQT, Bain in final race for controlling stake in Whirlpool India as rivals back out: Report

In February 2023, it sold a 24.7 percent stake through block deals worth Rs 4,039 crore

Global private equity giants EQT and Bain Capital are reportedly the last two contenders in the race to buy a 31 percent controlling stake in Whirlpool of India, the listed Indian arm of US home appliance maker Whirlpool Corporation, according to an Economic Times report citing senior industry executives.

Rival bidders like TPG, KKR, Havells, and Reliance Industries have dropped out, narrowing the contest to just EQT and Bain. Both firms are currently carrying out detailed due diligence, with binding offers expected by August, the report added.

The stake sale is part of Whirlpool’s global restructuring strategy initiated in late 2022, after the company reported a $1.5 billion loss. The US parent, known for brands like Whirlpool, KitchenAid, and Maytag, aims to raise $550–600 million through the sale of its 31 percent stake, while retaining a 20 percent interest in the Indian unit.

The company’s Indian equity is held via Whirlpool Mauritius. Goldman Sachs is managing the formal stake sale process, which was launched in April.

Whirlpool has not responded to media queries, while EQT and Bain have also declined to comment. Moneycontrol could not independently verify the report.

Why the India business matters

Whirlpool of India is a key revenue driver for the company’s Asia operations. As of Tuesday, the Indian unit’s market capitalisation stood at Rs 18,116 crore. The sale will also trigger an open offer for an additional 26 percent stake, potentially raising the incoming investor’s total holding to 57 percent, depending on subscription levels. Public shareholders currently own 49 percent of the company.

At current market prices, a full 57 percent acquisition would be worth approximately Rs 10,354.6 crore, slightly above initial expectations.

Valuation, royalty issues causing friction

Sources told ET that valuation concerns and future royalty payouts to the parent have been sticking points for many interested parties. Whirlpool India shares had crashed by 20 percent in January when the company first announced plans to reduce its stake. However, the stock has since rebounded, rising over 33 percent in April alone, following the launch of the stake sale. Since April, the stock has gained nearly 29.4 percent, closing at Rs 1,427.90 on the BSE on Tuesday.

If the US parent is not satisfied with the final offers, analysts, as per the ET report, believe it may once again opt for an open market route to offload shares. In February 2023, it sold a 24.7 percent stake through block deals worth Rs 4,039 crore, with mutual funds like SBI MF and Aditya Birla Sun Life MF, and foreign investor Societe Generale among the buyers.

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