Whirlpool Sells Hoover to Techtronic for $107 Million

Whirlpool Corp announced that it will sell its Hoover unit to Hong Kong-based Techtronic for $107 million. Whirlpool acquired the nearly century-old producer of vacuum cleaners as part of its Maytag purchase earlier this year, and is selling Hoover to concentrate on its core business, because it faces fierce competition overseas. Since the Maytag purchase, Whirlpool has cut 4,500 jobs, shut down plants, and is selling off some of its divisions. There is still uncertainty whether current Hoover plants in America will stay open, since the majority of Techtronic's labor force is in China. Techtronic is currently improving its hand-held dirt devil vacuum brand and plans to develop innovations for Hoover products. Shares of Whirlpool fell 24 cents to $86.13 while Techronic's shares gained 14 cents to $10.20 in Hong Kong.
• Sources: Bloomberg, Reuters, USAToday, Press Release
• Related commentary: Jim Cramer's Take on WHR, Barron's: Time to Buy Housing Stocks
• Potentially impacted stocks and ETFs: Whirlpool (WHR). Competitors: General Electric (GE)

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