NEWTON, Iowa, June 20 /PRNewswire-FirstCall/ -- Maytag Corporation
(NYSE: MYG) announced today that it has received a preliminary non-binding
proposal from Bain Capital Partners LLC, Blackstone Capital Partners IV L.P.
and Haier America Trading, L.L.C. to acquire all outstanding shares of Maytag
for $16 per share cash. On May 19, 2005, Maytag agreed to be acquired by an
investor group led by Ripplewood Holdings LLC for $14 per share cash.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO )
According to the preliminary non-binding proposal, completion of due
diligence is expected to take 6-8 weeks, and the proposal is conditioned,
among other things, on the due diligence, along with the negotiation of a
definitive agreement and necessary approvals. The proposal contemplates debt
financing provided by Merrill Lynch & Co. on terms and conditions to be agreed
upon among Merrill Lynch, Bain, Blackstone and Haier America.
After a special committee meeting of the Board of Directors, Maytag stated
that, while it intends to proceed with further due diligence with Bain,
Blackstone and Haier America, there can be no assurance that the preliminary
non-binding proposal would result in a definitive agreement.
Howard Clark, Maytag's lead director, said, "We continue to support the
Ripplewood transaction; however, we also believe that it is incumbent on us to
pursue this possibility of achieving a higher price for our stockholders."
Maytag Corporation is a $4.7 billion home and commercial appliance company
focused in North America and in targeted international markets. The
corporation's primary brands are Maytag(R), Hoover(R), Jenn-Air(R), Amana(R),
Dixie-Narco(R) and Jade(R).
Forward-Looking Statements
This document includes statements that do not directly or exclusively
relate to historical facts. Such statements are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking statements
include statements regarding benefits of the proposed transactions, expected
cost savings and anticipated future financial operating performance and
results, including estimates of growth. These statements are based on the
current expectations of management of Maytag. There are a number of risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements included in this document. For example, with
respect to the transaction with a group led by Ripplewood Holdings LLC (1)
Maytag may be unable to obtain shareholder approval required for the
transaction; (2) Maytag may be unable to obtain regulatory approvals required
for the transaction, or required regulatory approvals may delay the
transaction or result in the imposition of conditions that could have a
material adverse effect on Maytag or cause the parties to abandon the
transaction; (3) conditions to the closing of the transaction may not be
satisfied; (4) Maytag may be unable to achieve cost-cutting goals or it may
take longer than expected to achieve those goals; (5) the transaction may
involve unexpected costs or unexpected liabilities; (6) the credit ratings of
Maytag or its subsidiaries may be different from what the parties expect; (7)
the businesses of Maytag may suffer as a result of uncertainty surrounding the
transaction; (8) the industry may be subject to future regulatory or
legislative actions that could adversely affect Maytag; and (9) Maytag may be
adversely affected by other economic, business, and/or competitive factors.
Additional factors that may affect the future results of Maytag are set forth
in its filings with the Securities and Exchange Commission ("SEC"), which are
available at http://www.maytagcorp.com. Maytag undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
Additional Information and Where to Find It
In connection with Maytag's proposed transaction with a group led by
Ripplewood Holdings LLC, a proxy statement of Maytag and other materials will
be filed with SEC. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE
OTHER MATERIALS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT MAYTAG AND THE PROPOSED TRANSACTION. Investors
will be able to obtain free copies of the proxy statement (when available) as
well as other filed documents containing information about Maytag at
http://www.sec.gov, SEC's Web site. Free copies of Maytag's SEC filings are
also available on Maytag's Web site at http://www.maytagcorp.com.
Participants in the Solicitation
Maytag and its executive officers and directors may be deemed, under SEC
rules, to be participants in the solicitation of proxies from Maytag's
stockholders with respect to the proposed transaction with a group led by
Ripplewood Holdings LLC. Information regarding the officers and directors of
Maytag is included in its definitive proxy statement for its 2005 annual
meeting filed with SEC on April 4, 2005. More detailed information regarding
the identity of potential participants, and their direct or indirect
interests, by securities, holdings or otherwise, will be set forth in the
proxy statement and other materials to be filed with SEC in connection with
the proposed transaction.
Media Contact: Karen Lynn and John Daggett
Maytag Corporate Communications
(641) 787-8185 or (641) 787-7711
klynn2@maytag.com and jdagge@maytag.com
SOURCE Maytag Corporation
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Related links:
http://www.maytagcorp.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Media, Karen Lynn, +1-641-787-8185,
klynn2@maytag.com, or John Daggett, +1-641-787-7711,
jdagge@maytag.com, both of Maytag Corporate Communications
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