Maytag Plans To Sell Hoover Europe Unit
Maytag Corp. said Tuesday it is selling its Hoover Europe division at a loss, ending an embarrassing chapter in the appliance manufacturer’s history.
Maytag said it will sell Hoover Europe for about $170 million to Candy SpA, an Italian appliance maker, and that it will record a loss of about $130 million on the deal. But it is keeping its Hoover line of floor-care products in North America in addition to its Maytag, Jenn-Air, Magic Chef and Admiral appliance operations.
Maytag lost about $72 million in 1993 on a promotional fiasco by Hoover Europe executives, who offered free airline tickets to British and Irish customers who bought Hoover vacuum cleaners or other appliances for as little as $150.
After Tuesday’s announcement, Maytag stock rose 3.25 percent.