Major domestic appliance manufacturer Whirlpool Corporation has entered into an agreement with Emerson Electric Co to buy InSinkErator for $3billion.

Established in 1938, InSinkErator has a market share of over 70% for food waste disposers.

The waste disposer and hot water tap manufacturer is expected to operate as a separate business as part of Whirlpool’s North America Region and maintain its headquarters in Mount Pleasant, Wisconsin.

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Whirlpool Corporation plans to initially fund the acquisition through available liquidity, with new debt put in place at a later date.

The deal is expected to close in the fourth quarter of 2022.

Commenting on the acquisition, chairman and CEO of Whirlpool Corporation Marc Bitzer said: “We are excited for the unique opportunity to add InSinkErator to our portfolio of leading brands.

“The acquisition is a clear accelerator of our ongoing portfolio transformation and aligned with our stated goals of investing in high-growth and high-margin businesses and Win Americas.”

He continued: “InSinkErator is not only an iconic brand with a reputation for the highest quality and performance, but also a business that is purpose-driven and shares our vision of improving life at home.

“We look forward to capitalising on the significant growth opportunities we see for this business.”

Whirlpool Corporation expects to capitalise on InSinkErator’s consumer brand preference, driving recurring sales.

Greenhill & Co. LLC served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal counsel to Whirlpool Corporation.

Whirlpool recently posted Q2 2o22 sales of $5.1billion, affected by supply chain disruption and and sales slowdown attributed to the sale of a Russian factory and impaired by its EMEA region.