Whirlpool dusts off Hoover sale

Whirlpool corporation, the world’s largest appliance manufacturer, has finally offloaded its Hoover vacuum cleaner division after inheriting the loss-making unit following its takeover of Maytag last June.

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By  Administrator Published  December 31, 2006

Whirlpool corporation, the world’s largest appliance manufacturer, has finally offloaded its Hoover vacuum cleaner division after inheriting the loss-making unit following its takeover of Maytag last June.

The company is selling the division to Hong Kong-based Techtronic Industries for US$107 million, as it turns its focus to manufacturing washing machines and refrigerators.

The terms of the deal include two Hoover manufacturing plants in the United States and another in Mexico.

Hoover will be incorporated into Techtronic’s existing floor care appliance business.

The company currently owns two other floor care brands in Royal and Dirt Devil, and also manufactures the Ryobi range of power tools.

Whirlpool had been hunting for a buyer for Hoover since last June.

The company claimed the iconic vacuum cleaner brand held little strategic value for it long-term, as it pushed forward with the promotion of its core KitchenAid and Maytag household appliance brands.

Techtronic declined to confirm its immediate plans for the Hoover brand. The company’s manufacturing operations are predominantly based in China, although a company spokesperson said existing US-based Hoover plants would remain operational for the short-term.

The companies expect to finalise the transaction by the third quarter of 2007, the spokesperson confirmed.

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