Newspaper article THE JOURNAL RECORD

Household Appliance Companies to Merge

Newspaper article THE JOURNAL RECORD

Household Appliance Companies to Merge

Article excerpt

DES MOINES, Iowa (AP) - Two of the best known names in household appliances, Maytag and Hoover, will soon be under one roof following the $1 billion merger of Maytag Corp. and Chicago Pacific Corp.

Maytag announced Monday it plans to use the European connections of Hoover to power its own sales overseas. While investors initially drove Maytag's value down at the news of the deal, several analysts praised the combination as a long-term plus for the company.

``Through Chicago Pacific's Hoover division, we will become a leader in the international major appliance market,'' said Maytag chairman Daniel J. Krumm in a prepared statement.

He said the acquisition was a milestone for Maytag, based in Newton, Iowa, because it ``provides increased opportunities for our shareowners and helps us achieve our long-term strategy of becoming a global leader in the major appliance field.''

Maytag said it will launch a cash tender offer for up to 6.4 million shares, or approximately 49 percent of the outstanding shares, of Chicago Pacific at $60 per share. …

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