Whirlpool India Nears $1 Bn Stake Sale to Advent International

American private equity firm Advent International is reportedly in talks with Whirlpool Corporation to acquire a majority stake in its Indian subsidiary, Whirlpool of India. The two sides have been in an exclusive negotiation phase, which ends in November.

According to The Economic Times (ET), Advent International could end up paying as much as ₹9,682.88 crore for a 57% stake in the BSE-listed Whirlpool of India. The deal is expected to begin with the sale of a 31% stake, followed by an open offer as per the Securities and Exchange Board of India (SEBI) regulations.

If the deal goes through, Whirlpool Corporation will remain a minority shareholder, holding less than a quarter of the company, the report added.

The sale, managed by Goldman Sachs, earlier attracted interest from KKR, TPG, Bain Capital, EQT, Havells, and Reliance Industries. However, after initially leading the race, Bain and EQT dropped out, renewing Advent’s interest. If finalised, it would mark the PE major’s third acquisition in India’s appliances sector since 2015, following its investments in Crompton Greaves’ consumer electricals arm and Eureka Forbes.

Whirlpool Corporation, which holds 51% of its Indian unit through Whirlpool Mauritius, first sold a 24.7% stake for ₹4,039 crore ($468 million) in February 2024 to reduce debt.

It later announced plans to pare its holding to 20% by mid-to-late 2025 to focus on reviving its North American business. Whirlpool India shares have fallen 26% this year amid operational headwinds. If the talks with Advent fall through, the company may again consider a partial equity sale through block deals.

According to sources cited by the newspaper, Advent renewed its interest in Whirlpool India after the parent company and its affiliates signed five key agreements in October, including a 30-year brand licence and a 10-year technology licence, both extendable.

These agreements outline the fees Whirlpool India will pay for continued access to the brand and technology, ensuring business continuity even if Whirlpool Corp further reduces its stake.

Whirlpool India shares have since retreated from a 91% surge earlier this year that peaked in October. On Monday, the stock was trading 1.34% lower at ₹1,321 per share on the BSE in early trade.