By Adam Coleman
SYDNEY: Whirlpool has formally completed its $1.73 billion (A$2.4 billion) acquisition of former rival, Maytag Corp including the Australian operation and the now combined enterprise will immediately begin the integration process.
“This announcement comes at the perfect time for Whirlpool Australia,” said Whirlpool Australia managing director, Mark Poole.
“The company has undergone a period of transformation in recent months. We have stabilised our operational platform, improved revenue growth and bolstered the leadership team. The acquisition of Maytag is great news as it broadens the product range, increases our coverage and strengthens our brand portfolio to allow us to really drive the business forward in the Oceania region,” he said.
Whirlpool revealed it paid $US848 million in cash and issued about 9.6 million shares of Whirlpool common stock to make the purchase.
“The addition of the Maytag, Jenn-Air, Amana and other brands, and the people who support those brands, will allow Whirlpool to more fully deploy our innovation capability across a wide assortment of high-quality products and services,” said Whirlpool’s chairman and CEO, Jeff M. Fettig.
“The combined companies will create substantial benefits for consumers, trade customers and shareholders through continued development of innovative products, improved quality and service, and cost efficiencies,” Fettig said.
Whirlpool plans to release its first quarter earnings on April 25, and the company plans to provide more detailed information about its Maytag plans in approximately 60 days.