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IN BRIEF / MANUFACTURING

Maytag to Acquire 2 Amana Units

June 06, 2001|Reuters

Maytag Corp., in a bid to strengthen its focus on premium-brand appliances, said it has agreed to buy two Amana Appliances businesses from privately held Goodman Global Holding Co. for $325 million.

The purchase includes Amana's major appliance and commercial microwave oven businesses but excludes its home and commercial heating and air conditioning operations.

About 95% of the deal is cash, with the remainder in Maytag stock.

Chief Executive Leonard A. Hadley said the addition of Amana adds strength to Maytag's weakest product line--refrigeration products.

Newton, Iowa-based Maytag said it expects the acquisition to add to 2002 earnings before any one-time charges and to increase consolidated annual sales by about $900 million. Maytag posted 2000 sales of $4.25 billion.

Maytag rose 27 cents to $33.27 on the Big Board.

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