Refrigerators, washers and dryers, microwave ovens, and air conditioners
Reviewed by Margaret James
Fact checked by Vikki Velasquez
Whirlpool Corp. (WHR) is a leading home appliance company that sells products under a wide variety of brands including Whirlpool, KitchenAid, Maytag, Amana, Jenn-Air, and Consul. The company’s roots go back to 1908 when Lou Upton first sold electric washing machines to Sears.
Upton and his uncle Emory obtained funding three years later in 1911 to begin making a patented, electric motor-driven wringer washer. Upton Machine Co. was born and grew rapidly. The name was changed to Whirlpool Corp three decades later in 1950.
Whirlpool posted $488 million in net earnings on revenue of $19.46 billion in 2023. Its market cap was $4.91 billion as of May 2024. The company’s growth wouldn’t be possible without many subsidiary brands. Whirlpool has made acquisitions throughout its history to expand its product line from washing machines to all types of appliances. Its acquisitions have also allowed it to expand into a variety of domestic and foreign markets raising antitrust concerns in some cases.
Here’s a list of some of Whirlpool’s more notable acquisitions. Note that Whirlpool doesn’t provide revenue and profit figures by subsidiary.
Key Takeaways
- Whirlpool sells products under a wide variety of other brand names that include KitchenAid, Maytag, Amana, Jenn-Air, and Consul.
- The company began in 1908 when Lou Upton first sold electric washing machines to Sears.
- Whirlpool grew from there to a 2024 market cap of $4.91 billion in 2024.
- Whirlpool agreed to pay $1.7 billion to acquire its rival, the Maytag Corp, in August 2005.
- The company expanded its presence in Europe when it purchased Italian appliance maker Indesit Co. in 1975.
Seeger Refrigerator Co. and R.C.A. Stoves and Air Conditioners
- Type of businesses: Refrigerators, stoves, and air conditioners
- Acquisition price: Not available (3-company merger)
- Date of purchase: July 1955
One of Whirlpool’s earliest efforts to expand its product offerings and reach took place in 1955. It involved a major merger of three companies. Whirlpool merged with the Seeger Refrigerator Co., enhancing Whirlpool’s product line to include refrigerators.
Whirlpool also acquired the air conditioning and stove businesses of R.C.A. Corp. as part of the deal. The combined companies had assets of $130 million at the time of the merger.
Important
This was a key early development for Whirlpool because it helped to position the company as a provider of a wide range of appliances beyond its traditional washing machine offerings.
Maytag Corp.
- Type of business: Washers, dryers, kitchen and home appliances
- Acquisition price: $1.7 billion cash and stock
- Date of purchase: March 31, 2006
Whirlpool agreed to pay $1.7 billion to acquire its rival, the Maytag Corp., in August 2005. The aggregate value of the deal was $2.6 billion including about $900 million in Maytag debt. Whirlpool reimbursed another bidder’s $40 million breakup fee due to Whirlpool’s pursuit of Maytag.
Maytag was founded in 1893 in Iowa and had grown into a premier home appliance maker. Whirlpool became the immediate owner of successful brands through the Maytag deal, including Jenn-Air, the maker of microwave ovens, refrigerators, dishwashers, and small alliances. It also became the owner of several divisions of Amana, a popular maker of home appliances.
Whirlpool’s consolidation of control over the home appliance industry through the Maytag takeover wasn’t without its critics. The acquisition was the subject of an antitrust investigation by the U.S. Department of Justice which ultimately found that the transaction didn’t pose a major threat to competition.
KitchenAid
- Type of business: Kitchen and home appliances
- Acquisition price: Undisclosed
- Date of purchase: Jan. 12, 1985
Whirlpool announced plans to enter into an agreement with Hobart Corp., a unit of Dart & Kraft, Inc., in 1985. The goal was to acquire the appliance brand KitchenAid. Analysts estimated that Whirlpool paid as much as $170 million for KitchenAid although the price of the deal was undisclosed. KitchenAid was founded in 1919 and manufactures and sells products such as ovens, refrigerators, microwaves, dishwashers, and food processors.
The acquisition was delayed for a year due to an antitrust lawsuit that proved to be unsuccessful. Whirlpool finally acquired all operations of the company in 1986 except for the dishwasher and trash compactor operations. These were sold to Emerson Electric Co. as part of the acquisition agreement.
Hefei Rongshida Sanyo Electric Co., Ltd.
- Type of business: Home appliances (China)
- Acquisition price: Reported $552 million for 51% stake
- Date of purchase: Oct. 24, 2014
Whirlpool became the majority interest holder with the purchase of a 51% stake in China’s Hefei Rongshida Sanyo Electric Company Ltd. in October 2014. Hefei Sanyo is a leading home appliance maker based on the mainland. Whirlpool was struggling to grow sales in Asia at the time of the purchase.
Whirlpool expanded its reach beyond larger urban areas and into the previously untapped rural Chinese market with its acquisition of Hefei Sanyo which was renamed Whirlpool China Co. Ltd. as part of the deal.
Indesit Company S.p.A.
- Type of business: Home appliances (Europe)
- Acquisition price: Reported $1 billion for 60.4% stake
- Date of purchase: Oct. 4, 2014
Whirlpool acquired a 60.4% controlling stake in the Italian appliance maker Indesit Co. in 2014 for approximately $1 billion. Indesit was founded in 1975 and is known for its washing machines, freezers, and ovens. The deal was completed in cash and debt and took place just a year after Whirlpool made the similar purchase of a majority stake in China’s Hefei Sanyo.
The purchase expanded Whirlpool’s presence in Europe which was far smaller than in the U.S.
Whirlpool Diversity & Inclusiveness Transparency
As part of our effort to improve the awareness of the importance of diversity in companies, we have highlighted the transparency of Whirlpool’s commitment to diversity, inclusiveness, and social responsibility.
This chart illustrates how Whirlpool reports the diversity of its management and workforce. This shows if Whirlpool discloses data about the diversity of its board of directors, C-Suite, general management, and employees overall, across a variety of markers. We have indicated that transparency with a ✔.
| Whirlpool Electronics Diversity & Inclusiveness Reporting | |||||
|---|---|---|---|---|---|
| Race | Gender | Ability | Veteran Status | Sexual Orientation | |
| Board of Directors | ✔ | ✔ | |||
| C-Suite | ✔ | ✔ | |||
| General Management | ✔ | ✔ | |||
| Employees | ✔ | ✔ |
What Is a Company’s Market Cap?
A company’s market cap or market capitalization is the value of its outstanding shares. Market caps fall into four categories ranging from large to micro or very small. Microsoft is in the mid-cap group with its $4.91 billion 2024 market cap. A cap above $10 million is required to classify a company as a large-cap stock.
Market cap is calculated by multiplying the current share price by the outstanding shares. It can be useful in comparing companies within the same sector.
What Is the Lawsuit That Was Brought Against Whirlpool in 2024?
A class action lawsuit was filed against Whirlpool in February 2024 by plaintiffs who have been identified as “STACY COSTA, NATHANIEL GUERRERO, and MISSY ROBINSON, individually and on behalf of all others similarly situated.” The plaintiffs claim that some refrigerators produced and sold under the Whirlpool, Maytag, KitchenAid, and Kenmore brands are defectively wired and can present an electrocution and/or fire hazard.
Who Is Whirlpool’s Chief Executive Officer (CEO)?
Mark Bitzer has served as Whirlpool’s CEO since October 2017. He joined Whirlpool Europe as vice president in 1999 when he moved to Whirlpool from his previous role with Boston Consulting Group in Munich and Toronto.
The Bottom Line
Whirlpool Corp. was born in 1908 when Lou Upton sold electric washing machines to Sears. Upton and his uncle secured financing three years later to begin making a patented model under the tag Upton Machine Company. The name wasn’t changed to Whirlpool until 1950.
The company has grown by leaps and bounds since its modest inception and sells products under a wide variety of brands including Whirlpool, KitchenAid, Maytag, Amana, Jenn-Air, and Consul. Its market cap was $4.91 billion as of early 2024.