In what seems to have become something of a trend, Whirlpool have bought into the commercial laundry sector through an acquisition of the American Dryer company.
You can read through the full press release below but it doesn’t really tell us all that much that could be gleaned from the headline.
Electrolux of course already has an established commercial business that apparently does very well as does Miele, Whirlpool really does not. Gorenje of course acquired the Asko business and we suspect that is to appear to upmarket consumers and to dabble in semi-commercial products where margins are not under just so much pressure.
It is quite possibly that thought of higher margins and untapped markets that are seeing some manufacturers to throw their hat in that particular ring but, it isn’t an easy one to crack into with extremely well established operators already in play.
However, do not be surprised if others follow the lead.
Miele and ELectrolux may face new competition in a market that, up until recently, they have pretty much had the run of.
+++PRESS RELEASE+++
Whirlpool Corporation has entered into an agreement to acquire American Dryer Corporation (ADC), a privately held company that manufactures and markets coin-operated, on-premise, industrial and specialty laundry equipment.
The planned acquisition gives Whirlpool Corporation’s commercial laundry business a platform to reach new markets and channels, while building on a strong foundation of industry-leading innovation, quality, and service.
“Acquiring ADC strengthens our commitment to the commercial laundry industry and is aligned to our objectives of driving growth in adjacent businesses,” stated Jeff M. Fettig, Whirlpool Corporation Chairman and Chief Executive Officer. “We believe this acquisition nicely complements our leadership position in the overall laundry category.”
“Our Maytag and Whirlpool brands have a strong heritage in commercial laundry,” said Brett Dibkey, Vice President, North American Integrated Business Units for Whirlpool Corporation. “The addition of ADC is yet another step toward our goal of building the industry’s best, most reliable full line of commercial laundry equipment.”
Whirlpool Corporation expects to close on the purchase of ADC in early July with integration activities happening throughout the balance of 2015. ADC is headquartered in Fall River, MA and is home to approximately 230 employees, a 300,000 square foot manufacturing facility and state-of-the-art engineering and design center. The ADC manufacturing facility will become a valuable part of the Whirlpool manufacturing portfolio. Terms of the planned, non-reportable transaction will not be disclosed.