Maytag Corp. agreed to sell its second offshore Hoover business unit in less than a year to concentrate on core North American operations. The Newton, Iowa, appliance major agreed May 30 to sell Hoover European Appliance Group to Candy SpA of Monza, Italy, for about $170 million. The deal includes two injection molding operations at Hoover assembly plants near Glasgow, Scotland, and Merthyr Tydfil, South Wales.
Hoover European molds its own large parts but buys small appliance parts from outside firms, said Carolyn Knight, spokeswoman for Hoover European in Merthyr Tydfil. Hoover's North American business molds most of its own plastic parts, said Maytag spokesman Tom Schwartz.
Early this year Maytag agreed to sell its Hoover Co. operations in Australia and New Zealand to Southcorp Holdings Ltd., a diverse company in Adelaide, Australia, with interests in appli-ances, for $84 million.
Hoover European makes laundry, dishwasher and vacuum cleaning appliances, mainly for the UK market, at its two UK plants and at a facility in Portugal, Schwartz said. It had sales of $98.7 million and operating income of $1.2 million for the first quarter of 1995. It lost $3.7 million in the year-earlier quarter.
Candy produces washing machines, refrigerators and cooking ranges in Italy, France, England and Spain. The 50-year-old private firm had 1994 sales of about US$800 million, said spokesman Paul Carol.
It thermoforms components such as refrigerator liners, but contracts out injection molded parts, Carol said.
Candy will acquire rights to the Hoover trademark in Europe and parts of the Middle East and North Africa.
Maytag expects to take a book loss of about $130 million in the deal, expected to be finalized by the third quarter. Maytag got the European business in 1989 when it acquired Chicago Pacific Corp.