Whirlpool India stake sale: Advent International emerges frontrunner in $1 billion deal, says report

As per Indian takeover regulations, the share purchase would trigger an open offer for an additional 26%.

Advent International is in advanced discussions to acquire a controlling stake in Whirlpool of India, in what could be a deal worth around $1 billion, The Economic Times reported. The potential transaction marks another major step in the recent wave of global corporations realigning their India portfolios.

The US-based private equity firm is currently the sole contender in talks with Whirlpool Corporation, the Michigan-headquartered parent company, to purchase a 31% stake in its Indian arm. Both parties are reportedly in an exclusive negotiation period until the end of November. Industry executives cited by The Economic Times said that Whirlpool aims to finalize the deal by the end of this calendar year, after missing earlier internal deadlines.

As per Indian takeover regulations, the share purchase would trigger an open offer for an additional 26%. If fully subscribed, Advent could acquire up to 57% of Whirlpool India for around Rs 9,682.88 crore based on current market valuation, reducing Whirlpool Corporation's holding to below 25%.

This would be Advent's third acquisition in India's appliances sector since 2015, following its investments in Crompton Greaves Consumer Electricals and Eureka Forbes. Sources told The Economic Times that final due diligence and documentation are in progress, with Bain Capital and EQT having earlier shown interest before exiting the race.

Whirlpool India's stock performance has been under pressure, with shares down 26% year-to-date and quarterly revenues at a seven-quarter low, reflecting operational challenges. On Friday, shares closed flat at Rs 1,338.95 on the BSE, valuing the company at Rs 16,987.50 crore. The stock had surged 91% earlier in 2024 to a peak of Rs 2,449 before beginning its decline.

Whirlpool Corporation currently holds a 51% stake in its Indian unit through Whirlpool Mauritius Limited. In February 2024, it reduced its ownership from 75% to 51% by selling a 24.7% stake for Rs 4,039 crore ($468 million) to institutional investors via block trades, as noted by The Economic Times. The parent company stated that proceeds would be used to pare down debt. It later announced plans to bring down its stake further to about 20% by mid-to-late 2025, aiming to raise $550-600 million (Rs 4,684-5,110 crore) from the 31% sale.

Officials told The Economic Times that Advent renewed its interest following the signing of five key agreements between Whirlpool India and various group entities in October. These include a 30-year brand license deal, a 10-year technology license, a transitional services agreement, a deed of assignment of intellectual property, and a services agreement with Whirlpool Asia LLP. These long-term agreements, extendable beyond their initial terms, ensure business continuity and align interests between Whirlpool India and any future acquirer.

Whirlpool is among India's top four refrigerator and washing machine brands, though it primarily caters to the premium segment dominated by LG and Samsung. Despite being one of the first multinational consumer appliance brands to enter India in the late 1980s, the company has not matched the scale of its Asian rivals or domestic players such as Voltas.

During Whirlpool Corporation's third-quarter earnings call on October 28, Chief Financial and Administrative Officer James W. Peters said the company expects to announce the India stake sale by December, with completion targeted in the first half of 2026. Peters noted that the newly signed brand and technology agreements "paved the way" for how the parent and Indian unit would operate together in the coming years, describing them as "a prerequisite milestone" for the sale.

Goldman Sachs is managing the sale process, which initially drew interest from other global private equity firms such as KKR, TPG, Bain Capital, and EQT, as well as Indian corporates including Havells and Reliance Industries, The Economic Times added.

The planned divestment comes amid a broader trend of multinational corporations restructuring or exiting India operations. Companies such as Akzo Nobel, Deutsche Bank, Novartis, Diageo, and Pernod Ricard have also undertaken portfolio realignments in recent years, reflecting shifting global priorities and a focus on core markets.