Hoover workers consider making bid for company

Hoover workers consider making bid for company
 
Date March 01, 2006
Section(s) Local News
Brief  
 
NORTH CANTON, Ohio (AP) — The union representing Hoover Co. employees is proposing that the employees buy the troubled floor-care manufacturer.

Local 1985 of the International Brotherhood of Electrical Workers has retained two advisory firms to help it put together a bid for Hoover, which makes vacuum cleaners and other products for cleaning floors. The local represents about 1,000 employees.

“These jobs are simply too important to our members and to our communities for us to stand still and wait for others to determine our fate,” said Jim Repace, the local’s president.

An additional 1,800 nonunion hourly employees in Juarez, Mexico, and El Paso, Texas, also could be part of the buyout, he said.

The U.S. Justice Department is reviewing Whirlpool Corp.’s proposed $1.79 billion acquisition of rival appliance-maker Maytag Corp., which owns Hoover.

Maytag said in February that it is looking at options for the Hoover, including a sale. Maytag spokesman John Daggett had no comment about a possible Hoover employees’ bid.

Repace said the union has retained Christopher Mackin, of Ownership Associates Inc. in Cambridge, Mass., and Richard May, of Duff & Phelps Securities in Chicago, to help form an acquisition company to make a bid and a business plan that would include an equity partner.

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