Going by its plan announced in May 2015, Whirlpool Corp. WHR concluded the acquisition of American Dryer Corporation last week. The acquisition highlights the company’s attempt to keep up with its goal of strengthening its commercial laundry business. Whirlpool already has a strong presence in the laundry category, given its Maytag and Whirlpool brands.
The addition of American Dryer, the manufacturer and seller of on-premise, coin-operated, specialty and industry laundry equipment, is expected to further enhance Whirlpool’s commercial laundry business by providing a platform to expand into newer markets. The integration of this Massachusetts-based company into Whirlpool’s operations is anticipated to continue through 2015.
Whirlpool has always been focused on global expansion, with an aim to reduce geographical risks that can arise from concentration in one region. As part of this strategy, the company had acquired Italy-based Indesit Company S.p.A. and China’s Hefei Rongshida Sanyo Electric Co. Ltd. in Oct 2014.
The company is currently in the process of expeditiously integrating these acquisitions into its business. Termed as transformational, these buyouts have the potential to provide persistent growth opportunities in Europe and China, while creating long-term value and diversification globally.
Whirlpool currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the related industry include Hooker Furniture Corp. HOFT , with a Zacks Rank #1 (Strong Buy), Leggett & Platt, Incorporated LEG and Stanley Furniture Company, Inc. STLY, each with a Zacks Rank #2 (Buy).
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