Whirlpool acquires US appliance rival
Monday, 22 August 2005US appliance giant Whirlpool is to acquire smaller rival Maytag for about $2.7 billion after outbidding a Chinese firm and another US investment group.
Whirlpool, the largest US maker of home appliances, said in a statement it signed a 'definitive merger agreement' to buy Maytag in a deal that includes shares, cash and assumption of debt.
Maytag paid a $40m termination fee to end the deal reached earlier in the year with Ripplewood Holdings, a US investment partnership.
A Whirlpool-Maytag alliance would command a 48% market share for major appliances, ahead of 26% and 20% for General Electric and Electrolux respectively, according to estimates compiled by Prudential Equity Group.
Maytag had also been courted by Haier America, a unit of Chinese firm Qindao Haier Ltd, which was backed by Bain Capital and The Blackstone Group. That group abandoned its bid last month.
