Maytag Calls Off Sale of Operations in Australia and New Zealand
NEWTON, Iowa (AP) _ Maytag Corp. on Friday canceled plans to sell its appliance business in Australia and New Zealand, citing deteriorating market conditions.
In May, Maytag said it planned to spin off its Hoover Australia business through a sale of stock. It said the operation, while performing well, was not critical to the appliance company’s overall strategy.
The Australian media initially estimated Maytag’s proceeds from the proposed stock sale at $90 million to $100 million.
A decline in the Australian new issues market, however, has reduced the value below the level Maytag wanted to sell the business for, said Maytag spokesman James Powell.
Hoover Australia, which Maytag acquired in 1989, had $127.9 million in 1993 revenues. The company sells laundry equipment, refrigerators and floor care products, mostly in Australia and New Zealand.
Maytag, based in Newton, Iowa, had almost $3 billion in sales last year. It operates 20 plants in six countries and employs 21,000 people. Its appliance brands include Maytag, Hoover, Jenn-Air, Magic Chef and Admiral.