Whirlpool Corp. announced Thursday plans to sell its Hoover floor-care business to Techtronic Industries Co. Ltd. (TTI) for $107 million. The transaction is expected to be completed in the first quarter of 2007.
Techtronic Industries, headquartered in Hong Kong, is a supplier of home improvement and construction tools.
TTI will assume operational control of the Hoover business, including manufacturing operations in North Canton, Ohio; El Paso, Texas; Juarez, Mexico; and all other Hoover locations.
As part of the sale agreement, Whirlpool will retain the liabilities associated with pension and post-retirement benefit plans for currently retired Hoover employees.
According to Jeff M. Fettig, Whirlpool chairman and CEO, the divestiture of Hoover will allow Whirlpool to focus on its core appliance business.
Whirlpool has completed the sale of Dixie-Narco vending systems and Amana Commercial microwave business, and is working on completing the sale of the Jade business by the end of 2006, said Fettig.