Goodman Sells Amana Appliance Division

June 8, 2001
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HOUSTON, TX — Goodman Manufacturing and its related entities have announced the sale of its Amana Appliance and Commercial Cooking Division to Maytag Corp., Newton, IA. Maytag will pay $325 million for the division, with approximately 95% in cash and the remainder in Maytag stock.

Goodman, which purchased Amana in 1997, is selling the major appliance and commercial microwave oven businesses in order to focus on its core business of manufacturing hvac products, says the company. Goodman will retain the Amana air conditioning and heating division, and announced that the sale will not affect its hvac employee base. The company’s hvac operation employs 4,200 people nationwide, including 2,200 in the Houston area.

“The sale allows us to focus on the hvac business and expand the Goodman brands, including Amana air conditioning,” said John Goodman, chairman of Goodman Global Holding Co.

“We are committed to being the leading hvac manufacturer in the world by producing the highest quality products at the most competitive prices while continuing our commitment to high energy efficiency. This sale allows us to focus on our proven air conditioning, heating, and ventilation business heritage.”

Goodman said that the company had been looking at selling the Amana appliance businesses for a while, but the deal with Maytag took shape “in the last month or so.” The sale is part of the firm’s strategic plan to make hvac its focal point. “What attracted us to Amana in the first place was the air conditioning business.”

Regarding expanding its corporate brands, he remarked that the company plans on “building the Amana brand and focusing on the Goodman products as well.”

Rod Jay, manager, marketing communications for Goodman, affirmed, “The Amana air conditioning and heating brand has been picked up by several of our independent distributors. And I think you’ll see that expanding,” while the firm continues “to grow the other brands,” which include Janitrol, Goodman, and GMC.

David Parks, president of Goodman Manufacturing, said that the company is “positioned for growth.” He noted that the firm is relocating its corporate offices and adding 50,000 sq ft of production space.

One of the company’ goals is “to increase market share,” said Goodman, and add “additional quality distribution throughout the country and internationally as well.”

The combination of Maytag and Amana brings together two well-known major appliance brands.

“Immediately, we gain significant strengths with the addition of the Amana brand and product lineup,” stated Leonard A. Hadley, Maytag president and ceo.

“First, Amana extends our premium brand strategy in major appliances and provides an important new opportunity in channel and brand management. Second, we gain a premium brand in refrigeration with strong consumer preference. Amana’s core strength and heritage product line is refrigeration, which historically has been our weakest product category. Third, we gain accelerated product design and engineering in major appliances that can save us substantial development work and investment.”

The acquired Amana appliance businesses will add approximately $900 million to Maytag’s consolidated annual sales.

The acquisition is subject to regulatory approval and is expected to close during the third quarter.

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