Executives at Chinese home appliance manufacturer Qingdao Haier, Ltd. (Haier) have just learned that Ripplewood Holdings placed a bid to purchase Maytag Corporation for $1.13 billion or $14/share. Maytag Corporation, the 3rd largest home appliance manufacturer in the United States, has announced that it will consider competitive offers for the acquisition of the company. Chinese home appliance manufacturer, Qingdao Haier, Ltd. must evaluate the pros and cons of the Maytag Company and assets and decide whether or not to bid on the acquisition of the Maytag business.
Haier will evaluate the current status of its business and the goal to become at least #3 in the U.S. home appliance industry. Haier will then evaluate the current status of the Maytag business and what parts of the business may become assets and liabilities to Haier if acquired. Haier will then determine if the pros to purchase Maytag Corporation outweigh the cons in helping Haier achieve the company’s long-term goals.
Haier will place a bid to acquire Maytag Corporation for $1.28 million or $16/share. With the acquisition of Maytag, Haier will use the company’s innovative product design and marketing strategies to revitalize the Maytag brand presence and gain market share in the U.S. home appliance market, while continuing to market the successful Haier brand in other areas of the world.
Chinese company Qingdao Haier, Ltd. started out as a very low performing refrigerator manufacturer known as Qingdao Refrigerator Plant. In 1984, Qingdao Refrigerator merged with Germany’s Liberhaier Company to become Qingdao Haier, Ltd.
Haier has become one of the top 50 transnational corporations in developing countries. In addition to refrigerators, Haier manufactures a wide range of household appliances including washers, dryers, freezers, microwaves, air conditioners,