Maytag to continue to back bid from private equity group Ripplewood

Maytag to continue to back bid from private equity group Ripplewood

Maytag, the US firm behind the Hoover vacuum cleaner has somewhat rejected the bid coming from US appliance maker Whirlpool. The deal was worth USD 1.3 Billion and much higher than the bid of USD 1.13 Billion from private equity group Ripplewood, which they seems to prefer. The reason they say is that they have doubts if the company has a better future under Whirlpool as its new owner.

However, they have said that they would continue to study the bid from Whirlpool before arriving at a final decision. Haier, China’s biggest appliance maker has already dropped out of the race to acquire the famous American brand. Maytag owns home appliances brands like Amana, Jenn-Air, Jade and Dixie-Narco brand names, as well as making Hoover products.

The company has had a trouble keeping itself in profits due to increasing competition in the market and the rising raw material costing. Whirlpool on their part has said that although Maytag does not seem to be interested, they would continue to push for this deal. Some says the reason is that the company does not want a Chinese company to take over such a popular American brand.