Maytag has ended its $1.1 billion buyout agreement with private equity firm Ripplewood Holdings and paid $40 million to Ripplewood’s acquisition vehicle, Triton Acquisition.
Maytag has been reimbursed for the break-up fee by Whirlpool, the companies said in a statement on 22 August. The special meeting of Maytag shareholders scheduled for 9 September has been cancelled as a result.
Whirlpool will assume $977 million of its smaller rival’s debt. Whirlpool said the acquisition, subject to shareholder approval and regulatory clearance, could be completed by early 2006.
“The combination of Whirlpool and Maytag will create very substantial benefits for consumers, trade customers and shareholders,” said Whirlpool chairman and ceo Jeff Fettig.
