Acquistions Of Hoover, Warrantech Completed
By Alan Wolf -- TWICE, 2/1/2007
Benton Harbor, Mich. — Hoover and Warrantech each have new owners following separate transactions that closed today.
Whirlpool completed the previously announced sale of its Hoover floor care division to Techtronic Industries, makers of Royal- and Dirt Devil-branded vacs, for $107 million in cash. Whirlpool inherited Hoover as part of its buyout of Maytag last year. Techtronic assumes operational control of the Hoover business including manufacturing operations in North Canton, Ohio; El Paso, Texas; Juarez, Mexico; and all other Hoover locations.
Under terms of the deal, Whirlpool retains the liabilities associated with pension plans for pension benefits for both active and retired employees accrued up to the date of the sale and for post-retirement medical benefits for currently retired Hoover employees.
Separately, H.I.G. Capital has acquired all the outstanding shares of Warrantech, the independent provider of service contracts and after-market warranties, in a previously-announced cash merger for 75 cents per share. H.I.G. partnered with AmTrust Financial Services, a multinational specialty property and casualty holding company, to finance the transaction. AmTrust is the corporate parent of AMT Service Corp., a full-service warranty underwriter and administrator.
In a statement, Warrantech CEO Joel San Antonio said, “We are very pleased to have completed this transaction which our board felt was in the best interest of our stockholders. This transaction will provide Warrantech with a better opportunity to grow its business as a private company and service our customer base. H.I.G. has a proven track record of building value in its portfolio companies by providing strong financial and strategic support.”
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