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Whirlpool to acquire Maytag Corporation for $17 per share

18 Jul '05

2 min read

US based home appliances manufacturer Whirlpool Corporation announced it has made a proposal to purchase energy efficient kitchen appliances and clothes washing machines maker Maytag Corporation for $17 per Maytag share.

The total value of the proposal represents a 21% premium over the price offered by Triton Acquisition Holding in their current agreement with Maytag. This transaction is valued at $2.3 billion in cash and stock (based on assumed debt of $969 million). Whirlpool's proposal is subject to the satisfactory completion of due diligence and negotiation of a mutually acceptable definitive merger agreement.

“This transaction will provide Maytag shareholders with superior value compared to the current offer,” said Jeff M. Fettig, Whirlpool's chairman, president and CEO. “Equally important, the combination fits Whirlpool's strategy and capabilities, will create strong value for our shareholders and provide direct benefits to consumers and trade customers.”

Text of the proposal letter delivered to the CEO and Chairman of the Special Committee of Maytag is included at the end of this press release.

Whirlpool is being advised by Greenhill & Company, Weil Gotshal & Manges, and The Boston Consulting Group.

Whirlpool also announced that, based on its assessment of the current environment, it continues to expect full-year 2005 earnings per share of $5.90 to $6.10, cash provided by operating activities of approximately $860 million,and free cash flow in the $250 to $300 million range

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