Whirlpool is buying a majority stake in Chinese appliance maker Hefei Rongshida Sanyo Electric Co. Ltd. for about $552 (£412) million.
Whirlpool hopes that the transaction will help it expand in China.
CEO and Chairman Jeff Fettig said in a statement that the deal will give Chinese shoppers more products to choose from.
Hefei Sanyo had 2012 revenue of $636 million. Its brands include Sanyo, Rongshida/Royal Star and Diqua. The company is a joint venture between former Hefei Rongshida Group Co. Ltd. and Sanyo Electric Co. Ltd. and Sanyo Electric (China) Co. Ltd., a subsidiary of Panasonic Corp.
The deal gives Whirlpool a 51% stake in Hefei Sanyo, is expected to close by the end of 2014. It still needs Chinese regulatory approval and approval from Hefei Sanyo shareholders.
Whirlpool expects the transaction to add to its financial results in the first full year that Hefei Sanyo is part of its business. Whirlpool had sales of about $18 billion in 2012.