Last week, Whirlpool (NYSE: WHR) announced an acquisition that did not make huge headlines. Yet in purchasing garbage disposal leader InSinkErator for a mouth-watering valuation, Whirlpool strengthened its already compelling brand portfolio. Savvy investors may want to take note of the unheralded deal. Here's why.

Last week, home appliance leader Whirlpool plunked down $3 billion in cash for garbage disposal business InSinkErator. The company expects sales to reach $650 million and EBITDA, or earnings before taxes, interest, depreciation, and amortization, of above $170 million, meaning Whirlpool was able to secure the company for a valuation of about 14 times EBITDA.

Image source: Getty Images.

Continue reading

Source Fool.com