Home appliance maker
said late Thursday that it entered into a definitive agreement to be acquired by an investor group led by private equity firm
for $14 a share, or $2.1 billion.
Maytag's board has approved the agreement and intends to recommend to shareholders that they vote to approve the deal.
The transaction, which includes the assumption of about $975 million of debt, is expected to close before the end of year.
Maytag's performance has declined for some time; in its recent first-quarter earnings report, the company said sales slipped 4.2% to $1.17 billion. On May 12, the company cut its quarterly dividend in half to 9 cents a share.
Not surprisingly, Maytag shares shot more than 21% higher to $14.01 in after-hours trading subsequent to the deal's announcement.
In addition to Ripplewood, other members of the investor group are
GS Capital Partners
J. Rothschild Group