The labour union representing workers at Maytag Corp.’s Hoover unit Tuesday said it retained two advisory firms to consider a “worker-friendly” buyout of the vacuum company.
Maytag, which has agreed to be acquired by larger appliance rival Whirlpool Corp. , said in early February that it might sell Hoover and commercial businesses.
In a statement, the International Brotherhood of Electrical Workers Local 1985 said it retained Duff & Phelps Securities LLC of Chicago and Ownership Associates Inc. of Cambridge, Massachusetts, to work with it on a possible buyout of Hoover.
Jim Repace, union local president, said his group had also attracted a private equity fund, Landmark Partners of Boston, which was interested in acquiring Hoover, which is based in North Canton, Ohio.
“We’re starting to develop a lot of good backing,” Repace told Reuters. His union represents 800 workers at Hoover facilities in North Canton and Stark County, Ohio.
“We want to keep this company in North Canton, we want to grow here once again,” Repace added. “Our fear is if someone else purchases it, they’re not going to care about the city of North Canton.”
Maytag spokesman John Daggett repeated that Maytag was evaluating options for Hoover. “We will be glad to look at any and all proposals,” he said.
Hoover, an iconic name in vacuums, has struggled in the face of competition from rivals Dyson and Oreck and weak demand. It has also been hurt by lower-cost competitors such as Techtronic Industries Co.’s Dirt Devil.
Whirlpool’s proposed buyout is currently being reviewed by the U.S. Justice Department. Earlier this month, amid reports that regulators were considering a possible legal challenge, the companies agreed not to close the deal before March 30 to give regulators more time to complete their review.
From MSNBC