Industry News

TTI completes Hoover sale, will combine Hoover, Dirt Devil operations

Techtronic Industries has announced that it has completed its acquisition of the Hoover floor care business from Whirlpool Corporation in line with a purchase agreement between the companies announced in December 2006.

The deal had been challenged by the Ohio Attorney General’s office in recent weeks, which initially claimed the deal would restrict competition. However, TTI, after discussions with the state of Ohio officials, announced that it would make Glenwillow, OH, the corporate headquarters of TTI North America, and objections to the planned merger of Hoover and TTI’s Royal Appliance Division were withdrawn. In addition to creating a new corporate headquarters to house both its Royal and Hoover businesses, TTI announced plans for a research and development facility that will employ an additional 110 people at the Glenwillow site.

“We are proud to tell the world that Ohio is home to TTI Floor Care, North America’s largest floor care business,” said Joseph Galli, CEO of Techtronic Appliances Holding Co. Ltd., TTI’s global floor care and appliances division. “We have had intensive and productive discussions with the State of Ohio over the past two weeks. State officials are concentrated on enhancing Ohio’s economic health and in creating good employment opportunities. TTI is focused on bringing together the combined operations and brands of Dirt Devil and Hoover to create a strong and growing leader in the global floor care business. Our discussions have shown these goals to be in alignment.”

Under the terms of the sale TTI will assume certain liabilities of Hoover, including accounts payable as well as accruals and long-term post-retirement medical and life insurance benefits for transferred bargaining-unit employees. Whirlpool will retain liabilities associated with pension and post-retirement benefit plans for currently retired Hoover employees and those who retire prior to the final closing date. TTI Floor Care will assume in full the existing union contract that covers approximately 800 hourly workers at Hoover’s North Canton, OH, manufacturing facility and nearby distribution center.

The contract runs through June 2008. TTI Floor Care indicated it will assess all operations of Dirt Devil and Hoover to determine its specific manufacturing and distribution strategies.

Reprinted from Floor Care Professional, March 2007