The long bidding war over appliance maker Maytag Corp. is over, and rival Whirlpool came up with the winning number of $2.7 billion in cash and stock.
The two companies signed a merger agreement after an expected counteroffer from Ripplewood Holdings, which started the bidding, was not forthcoming. Under the terms of the deal, Whirlpool will pay Maytag shareholders about $21 a share and assume $977 million in company debt.
By joining forces with Maytag, Whirlpool will hold about 46 percent of the market for major appliances, well ahead of General Electric, which currently controls about a quarter of the market. The acquisition is likely to get a close review by the U.S. Justice Departments anti-trust regulators.
Maytag is based in Newton, Iowa, with about 20,000 employees. It manufactures appliances under the Maytag, Amana, Hoover, Jenn-Air and Magic Chef brand names. Whirlpool has 68,000 employees, and produces kitchen and household appliances under the Whirlpool, KitchenAid, Roper and Admiral brand names.
Consumers writing to ConsumerAffairs.com have consistently complained about some Maytag appliances, including dishwashers and washing machines.
In April of this year Maytag settled a consumer class action suit alleging odor, mold and mildew problems with Maytag Neptune Washers. More than two million consumers were included in the class, and may receive repair reimbursements, replacement costs up to $500, and/or washing machine purchase certificates up to $1000.
