Maytag Extends Premium Brand Strategy With Amana Purchase

Compiled ByPeter Strozniak Maytag Corp., Newton, Iowa, announced June 5 that it will purchase Amana Appliances for $325 million from Goodman Global Holding Co., a privately held company that acquired Amana in 1997. The deal, subject to regulatory approval, is expected to close during the third quarter. Maytag will acquire Amana's major appliances and commercial microwave-oven businesses. The purchase does not include Amana's home and commercial heating-and-air-conditioning businesses. The acquired businesses are expected to add approximately $900 million to Maytag's consolidated annual sales. Amana Appliances will be integrated into Maytag's major appliance division. Leonard A. Hadley, president and CEO of Maytag, said the acquisition will provide several strategic advantages, including the addition of a premium brand in refrigeration, which historically has been Maytag's weakest product category. Hadley also said the acquisition will provide cross-sourcing manufacturing opportunities in all product categories.