Hong Kong, December 7, 2006--Techtronic Industries Co. said it has entered into a purchase agreement to acquire the Hoover floor care business from Whirlpool Corporation.
The total consideration for the purchase consists of the payment of US$107 million in cash and certain assumed obligations. The transaction is expected to close by the third quarter of 2007, but could close as early as the first quarter of 2007.
Hoover offers a comprehensive line of products for general and special-purpose vacuuming and carpet washing, including full-size uprights and canisters, deep cleaners, and hard-floor cleaners.
"The addition of Hoover to our existing Royal Appliance and Vax floor care businesses will strengthen our market presence globally, by diversifying our customer base, expanding our product offering, and adding scale to our operations," said Mr. Horst J. Pudwill, chairman and CEO of TTI. "With almost 100 years of quality and innovation, the Hoover name is synonymous with high quality floor care products and is one of the most recognized brands in the world. We are pleased to be able to add it to our worldwide portfolio of leading brands".
Mr. Pudwill continued, "To achieve our vision to be number one in all of the markets in which we operate, we are focused on continually expanding our distribution network, delivering product innovation, driving supply-chain efficiencies, and building end-user dedication to our brands. With the acquisition of Hoover, we gain more than a powerful brand, as they have an innovative product portfolio and access to new customers through their unique position in the market."
