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Emerson (EMR) to Sell InSinkErator Business Unit for $3B

Emerson Electric Co. EMR has entered into an agreement with Whirlpool Corporation (WHR) to sell its InSinkErator business for $3 billion.

Emerson acquired InSinkErator, a manufacturer of food waste disposers and instant hot water dispensers for home and commercial use, in 1968. InSinkErator generated revenues of $595 million in the trailing twelve-month revenue, as of Mar 31, 2022. Emerson carries a Zacks Rank #3 (Hold).

Subject to regulatory approvals and other customary closing conditions, the deal is expected to close in Emerson’s 2023 fiscal year. By coordinating with Whirlpool, Emerson will help ensure a smooth transition for customers and InSinkErator’s nearly 1,400 employees.

InSinkErator's leading consumer brand preference, a large installed base and its expansion into new markets and product offerings are expected to boost revenues for Whirlpool. The acquisition is expected to add approximately $1.25 to WHR’s earnings in fiscal 2023. Upon  the transaction’s closing, InSinkErator is expected to operate as a separate entity within WHR’s North America region.

Whirlpool’s chairman and CEO, Marc Bitzer, said, “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," Whirlpool carries a Zacks Rank #4 (Sell).

Key Picks

Some better-ranked stocks within the broader Industrial Products sector are as follows:

Titan International, Inc. TWI presently sports a Zacks Rank #1 (Strong Buy). Its earnings surprise in the last four quarters was 47%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

Titan International has an estimated earnings growth rate of 157.7% for the current year. Shares of the company have rallied 39% in the past six months.

Greif, Inc. GEF presently carries a Zacks Rank #2 (Buy). GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average.

Greif has an estimated earnings growth rate of 36.8% for the current year. Shares of the company have gained 25.6% in the past six months.

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