Techtronic Industries, a Hong Kong-listed power tool maker, will buy the Hoover floor-care business from Whirlpool Corp for US$107 million in a move to gain access to new customers.
Techtronic will pay cash and assume Hoover's debt, the company said last night. Hoover makes vacuum cleaners, carpet washers and hard floor cleaners.
'The Hoover name is synonymous with high quality floor-care products and is one of the most recognised brands in the world,' said Horst Pudwill, Techtronic's chairman and chief executive.
'With the acquisition of Hoover, we gain more than a powerful brand, as they have an innovative product portfolio and access to new customers through their unique position in the market.'
Techtronic's last acquisition was the US$713 million purchase of two tool-making units from Swedish firm Atlas Copco last year.
The Hoover acquisition is subject to regulatory approval, which will determine if any antitrust laws are violated.