Whirlpool Corporation History

Whirlpool Corporation is a leading home appliance company that has acquired several appliance manufactures over the 110+ years of the companies being in business. Some of the brands you may know here in the US would include Whirlpool, KitchenAid, Maytag, Amana, Admiral, Roper, and Jenn-Air. The company start can be noted back in 1908, when Lou Upton set ownership of patents for a hand operated washing machine that he thought could be electrified.

Three years later in 1911, Upton and his uncle Emory obtained funding to begin making a patented, electric motor-driven wringer washer. The new enterprise, Upton Machine Co., was born, and grew rapidly. Three decades later in 1949, the name was changed to Whirlpool Corp.

One of Whirlpool’s earliest efforts to expand its product offerings and reach took place in 1955 involving a major merger of 3 companies. Whirlpool merged with the Seeger Refrigerator Co., enhancing Whirlpool’s product line to include refrigerators.
As a part of the deal, Whirlpool also acquired the air conditioning and stove businesses of R.C.A. Corp. The merger was a key early development for Whirlpool because it helped to position the company as a provider of a wide range of appliances beyond its traditional washer offerings.

In 1985, Whirlpool announced plans to enter into an agreement with Hobart Corp., a unit of Dart & Kraft, Inc., to acquire the appliance brand KitchenAid. Analysts estimated Whirlpool paid as much as $170 million for KitchenAid, though the price of the deal was undisclosed. Founded in 1919, KitchenAid manufactures and sells products such as ovens, refrigerators, microwaves, dishwashers, and food processors.

In August 2005, Whirlpool agreed to pay $1.7 billion to acquire its rival, the Maytag Corp. The aggregate value of the deal, including about $900 million in Maytag debt, was $2.6 billion. Whirlpool reimbursed another bidder’s $40 million breakup fee due to Whirlpool’s pursuit of Maytag.

Maytag, founded in 1893 in Iowa, had grown into a premier home appliance maker. Through the Maytag deal, Whirlpool became the immediate owner of successful brands such as Jenn-Air, the maker of microwave ovens, refrigerators, dishwashers, and small alliances. It also became the owner of several divisions of Amana, the popular maker of home appliances.