Whirlpool Corporation and Maytag Corporation Merger Cleared By U.S. Department of Justice
March 29 2006 - 6:15PM
PR Newswire (US)
BENTON HARBOR, Mich., and NEWTON, Iowa, March 29
/PRNewswire-FirstCall/ -- Whirlpool Corporation (NYSE:WHR) and
Maytag Corporation (NYSE:MYG) today announced they have received
clearance from the U.S. Department of Justice to complete their
proposed merger. Whirlpool plans to close the transaction as soon
as practical, but no later than April 3, 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040202/DETU004LOGO
http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO ) "We are
pleased with the Department of Justice's decision and look forward
to closing the transaction, and begin the integration of our
businesses," said Jeff M. Fettig, Whirlpool's chairman and CEO.
"The combination of Whirlpool and Maytag will create substantial
benefits for consumers, trade customers and shareholders, through
continued development of innovative products, improved quality and
service, and cost efficiencies. The Maytag portfolio of brands,
when combined with Whirlpool, will enhance our ability to succeed
in reaching a broader set of customers, which can benefit from our
innovation and efficiencies." "Our merger with Whirlpool provides
fair value to Maytag shareholders," said Ralph Hake, Maytag's
chairman and CEO. "This transaction will enhance the
competitiveness of the Maytag brands with new innovation and
greater global reach to a broader base of consumers through
Whirlpool's established sales and manufacturing capabilities."
About Whirlpool Corporation Whirlpool Corporation is a global
manufacturer and marketer of major home appliances, with annual
sales of more than $14 billion, 66,000 employees, and nearly 50
manufacturing and technology research centers around the world. The
company markets Whirlpool, KitchenAid, Brastemp, Bauknecht, Consul
and other major brand names to consumers in more than 170
countries. About Maytag Corporation Maytag Corporation is a $4.9
billion home and commercial appliance company focused in North
America and in targeted international markets. The corporation's
primary brands are Maytag(R), Hoover(R), Jenn-Air(R), Amana(R),
Dixie-Narco(R) and Jade(R). Whirlpool Additional Information: This
document contains forward-looking statements that speak only as of
this date. Whirlpool disclaims any obligation to update these
statements. Forward-looking statements in this document include,
but are not limited to, expectations as to the closing of the
proposed merger with Maytag Corporation. Many risks, contingencies
and uncertainties could cause actual results to differ materially
from Whirlpool's forward-looking statements. Among these factors
are: (1) intense competition in the home appliance industry
reflecting the impact of both new and established global, including
Asian and European, manufacturers and the strength of trade
customers; (2) Whirlpool's ability to continue its strong
relationship with Sears Holding Corporation in North America
(accounting for approximately 15% of Whirlpool's 2005 consolidated
net sales of $14 billion) and other significant trade customers,
and the ability of these trade customers to maintain or increase
market share; (3) demand for Whirlpool's products, including the
strength of the U.S. building industry and the level of interest
rates; (4) the ability of Whirlpool to achieve its business plans,
including productivity improvements, cost control, leveraging of
its global operating platform and acceleration of the rate of
innovation; (5) fluctuations in the cost of key materials
(including steel, oil, plastic resins, copper and zinc) and
components and the ability of Whirlpool to offset cost increases;
(6) the ability of suppliers of critical parts, components and
manufacturing equipment to deliver sufficient quantities to
Whirlpool in a timely and cost-effective manner; (7) changes in
market conditions, health care cost trends and pending regulation
that could increase future funding obligations for pension and
post-retirement benefit plans; (8) the cost of compliance with
environmental and health and safety regulation, including new
regulations in Europe regarding appliance disposal; (9) potential
exposure to product liability claims, including the outcome of
Whirlpool's previously- announced investigation of a
supplier-related quality and potential product safety problem that
may affect up to 3.5 million appliances manufactured between 2000
and 2002; (10) the impact of labor relations; (11) Whirlpool's
ability to obtain and protect intellectual property rights; (12)
the ability of Whirlpool to manage foreign currency and its
effective tax rate; (13) global, political and/or economic
uncertainty and disruptions, especially in Whirlpool's significant
geographic markets, including uncertainty and disruptions arising
from natural disasters, including possible effects of recent U.S.
hurricanes, or terrorist activities; and (14) risks associated with
operations outside the U.S. Other such factors relate to
Whirlpool's pending merger with Maytag Corporation, including,
after the merger is completed, Whirlpool's ability to integrate the
business of Maytag on a timely basis and realize the full
anticipated benefits of the merger within the current estimate of
costs. Additional information concerning these factors can be found
in Whirlpool's filings with the Securities and Exchange Commission,
including the annual report or Form 10-K for its fiscal year ended
December 31, 2005. Maytag Additional Information: This document
includes statements that do not directly or exclusively relate to
historical facts. Such statements are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements speak only as of this date and include
statements regarding anticipated future financial operating
performance and results and expectations as to the closing of the
transaction with Whirlpool. These statements are based on the
current expectations of management of Maytag. There are a number of
risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements included in this
document. For example, with respect to the transaction with
Whirlpool (1) conditions to the closing of the transaction may not
be satisfied or the merger agreement may be terminated prior to
closing; (2) Maytag may be unable to achieve cost-cutting goals or
it may take longer than expected to achieve those goals; (3) the
transaction may involve unexpected costs or unexpected liabilities;
(4) the credit ratings of Maytag or its subsidiaries may be
different from what the parties expect; (5) the businesses of
Maytag may suffer as a result of uncertainty surrounding the
transaction; (6) the industry may be subject to future regulatory
or legislative actions that could adversely affect Maytag; and (7)
Maytag may be adversely affected by other economic, business,
and/or competitive factors. Additional factors that may affect the
future results of Maytag are set forth in its filings with the
Securities and Exchange Commission ("SEC"), which are available at
http://www.maytagcorp.com/ . Maytag undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. For a
description of such factors, refer to "Risk Factors" and "Forward-
Looking Statements" in Maytag's Form 10-K for the year ended Dec.
31, 2005. http://www.newscom.com/cgi-bin/prnh/20040202/DETU004LOGO
http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO DATASOURCE:
Whirlpool Corporation; Maytag Corporation CONTACT: Whirlpool
Contacts: Media: Whirlpool Corporate Communications,
+1-269-923-7405, Investors: Larry Venturelli, +1-269-923-4678, ; or
Maytag Contacts: Karen Lynn, +1-641-787-8185, , John Daggett,
+1-641-787-7711, Web site: http://www.whirlpoolcorp.com/
http://www.maytagcorp.com/
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