Global private equity firm Advent International has ended advanced talks to buy a major stake in Whirlpool of India, after negotiations with Whirlpool Corp broke down over price, according to people familiar with the matter. The deal under discussion was valued at about $1 billion and would have given Advent control of the Indian home-appliance maker.
Sources said Advent pushed for a reduced valuation, pointing to near-term challenges in Whirlpool’s Indian operations, while the U.S. parent focused on raising as much cash as possible to pay down debt. With neither side prepared to compromise sufficiently, the process has been halted and exclusive talks have lapsed. Both Advent and Whirlpool have declined to comment publicly on the negotiations, which were never formally announced.
How The Stake Sale Was Structured
Whirlpool Corp, based in Michigan, holds 51% of its listed Indian subsidiary and has been seeking to reduce that stake to roughly 20% as part of a wider rebalancing of its global portfolio. In January, the company told investors that selling part of its shareholding in Whirlpool of India could generate net cash of around $550 million to $600 million, money earmarked primarily for debt reduction.
Under the outline discussed with Advent, the buyout group was expected to acquire about 31% of Whirlpool of India directly from the parent. Under India’s takeover rules, that size of block would have triggered a mandatory open offer for an additional 26% of the company’s shares from public investors, potentially lifting Advent’s total holding to 57% and giving it effective control. Combining the negotiated stake with any shares tendered in the open offer would have taken the total deal value to around $1 billion.
People close to the process said a widening gap on valuation emerged as due-diligence progressed. Whirlpool sought a price it believed reflected the strength of the brand and the importance of the Indian business, while Advent pointed to pressure on margins and rising compliance costs as reasons for a discount. With markets volatile and financing conditions tighter than in recent years, the sides were unable to close the gap.
Competitive And Regulatory Pressures In India
Whirlpool has sold refrigerators, washing machines and other appliances in India for decades and remains a widely recognised consumer brand. In the financial year to the end of March, Whirlpool of India’s revenue from operations rose about 16% to roughly $880.53 million, but analysts say profitability has been squeezed by intense competition from rivals such as LG Electronics India and Samsung Electronics.
The company is also adjusting to a tougher regulatory backdrop. India has tightened rules on product standards and energy-efficiency norms, requiring manufacturers to invest more in testing and design upgrades. People familiar with Advent’s thinking said these trends fed into the firm’s push for a more conservative valuation, on the view that higher compliance costs and shifting consumer preferences could weigh on earnings in the short term.
Investor sentiment toward the stock has weakened. Shares of Whirlpool of India are down about 47% so far this year, lagging India’s main equity indices. In late November, a Whirlpool affiliate sold around 14.3 million shares in the Indian unit at roughly 1,044.97 rupees apiece, a move that underlined the parent company’s desire to unlock capital from its India exposure.
Outlook For Whirlpool And Advent
The end of the Advent talks complicates Whirlpool’s efforts to streamline its global footprint and strengthen its balance sheet at a time of higher borrowing costs and shifting consumer demand. Bankers say the company is still expected to explore alternatives for its Indian holding, including renewed interest from other private equity firms and potential strategic buyers, though any new bidder will face similar questions around price and growth prospects.
For Advent, the setback does not alter the firm’s broader push in India, where it has been expanding across consumer, industrial and services businesses. The group already backs domestic names such as Eureka Forbes, and dealmakers expect it to continue seeking acquisitions that tap into rising household incomes and urbanisation. Even without Whirlpool, India remains one of the most active markets globally for private equity capital.
