Whirlpool has launched a public offering to raise 800 million of dollars, intended to reduce the debt and to invest decisively in automation e innovationA decidedly courageous, but above all necessary, recourse to the financial market, accompanied by world-class partners. It was required by critical budget data, a situation of extreme uncertainty due to the duties “dancers” of Trump and a constantly declining manufacturing footprint, as well as strategies and market shares. Technically speaking, the operation is structured according to these parameters: a public offering of common stock and deposit shares related to the new mandatory convertible preferred stock of Series A.
Partners and analysts' opinion
Partners - Wells Fargo Securities, JP Morgan Securities e Citigroup Global Markets – act as lead joint bookrunning managers for the deals. BNP Paribas Securities Corp. e Mizuho Securities USA act as joint bookrunning managers for the offers. Scotia Capital (USA) Inc. is also acting as joint bookrunning manager for the offering of the depositary shares and co-manager for the offering of the common shares. Icr Capital LLC is acting as financial advisor to Whirlpool in relation to the offering of the depositary shares.
The comments refer to potential liquidity problems, a high debt, a drop triennial of the turnover of 7,8% and a edge operating of 4,68%, below the historical average of 6,28%, as well as a highly saturated market with very strong competitors.
The Bosch offer
In June 2024, Bosch had started unofficial acquisition negotiations Whirlpool, aiming to strengthen its position in the US market and, given the ongoing crisis in the automotive sector, to expand into other sectors such as major appliances. The American company's refusal and, above all, the government's hostility to the sale of one of the US company's last traditional brands had severed all contact.
One obstacle: Trump's environmental cuts
On the other hand, the growing difficulties that Whirlpool – after having closed or sold all branches outside the US – was encountering, which sooner or later required very substantial and continuous investments to modernize a technologically and aesthetically outdated catalog, out of step with the new needs of a market that requires increasingly efficient devices. It was precisely on efficiency, however, that the first Trump administration, with the elimination of more than 200 EPA regulations protecting the environment, and the second, current one, with the definitive elimination of the remaining ones, have put American and foreign companies committed to significant investments in eco-sustainability and energy efficiency in crisis. Among these, most of all, Whirlpool.
Whirlpool China to Chinese Galanz
The news from the Benton Harbor company does not end with this first move on the capital market Because, shortly thereafter, another press release was released announcing "the evaluation of the expanded simultaneous offerings of ordinary shares and depositary shares." This is, therefore, a clear acceleration in the search for capital to support the stock, the company, and investments, but also a further move on the global stage that signals growing difficulties. In this context, the cession of participation in Whirlpool China al Chinese giant Galanz, its traditional supplier of household appliances: an agreement from 366,8 million dollarsSince 2021, Galanz had owned 51% of the Chinese division. With the completion of part of the purchase offer, the remaining 10% has become entirely Galanz's. It remains to be seen whether the package also includes the transfer of the license to use the American brand.
