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Maytag Closes Amana Deal

Newton, Iowa – Maytag has completed its acquisition of Amana Appliances from Goodman Global Holdings for $325 million.

The buyout, announced in June, will add some $900 million to Maytag’s annual sales, but is expected to reduce 2001 earnings by 6 cents to 9 cents per share, with most of the impact to be felt in the fourth quarter. The deal is expected to be accretive to earnings by a double-digit percentage in 2003.

Maytag chairman/CEO Ralph Hake acknowledged that ‘an acquisition of this type – at this time in the industry cycle – will require a clear vision for the business, strong execution and the wherewithal to make decisions quickly and to implement change swiftly.’ But the payoff, he said, is that the majap makers will be stronger together strategically, operationally and financially, as well as in brand, product and distribution reach.

Hake added that a transition team, supplemented by ‘outside resources,’ is already in place to direct the integration of the two companies.