Chinese firm bids on Maytag
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Manufacturing News, Source : TheManufacturer.com
Published : 21 Jun 2005 17:32
China’s Haier Group has placed a $1.28 billion bid for Maytag Corp.
Haier Group, China’s top appliance manufacturer, and two private equity firms Bain Capital and Blackstone Group have outbid Ripplewood Holdings LLC for the iconic washing machine maker. Maytag Corp. has seen hard times as of late due in large part to sky rocketing material costs and competition from lower-priced competitors.
Most Chinese companies lack brand equity outside China. It is believed Haier would be buying instant brand name recognition with the purchase of Maytag, who also manufacturers Hoover vacuums and Amana and Jenn-Air appliances.
This bid also marks the first time Haier has attempted a major international acquisition. Haier is a state-run conglomerate that controls Qingdao Haier Refrigerator Co. Ltd. and Haier Electronics Group Co. Ltd. Haier currently sells lower-priced appliances in the United States, and adding Maytag would greatly strengthen its product offering.
In light of the new bid, Maytag officials are keeping their options open. "We continue to support the Ripplewood transaction," Howard Clark, Maytag's lead director, said in a statement. "However, we also believe that it is incumbent on us to pursue this possibility of achieving a higher price for our stockholders."
No official counteroffer has yet been made by Ripplewood.
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