Numerous media outlets are reporting that floor care appliance giant Techtronic Industries has acquired bankrupt United States vacuum cleaner maker Oreck.
Oreck Corp., based in Nashville, TN, has been operating under Chapter 11 bankruptcy. The founding Oreck family had expressed a desire to buy the company back (the family sold the company to a private equity firm in 2002).
News outlet The Tennessean reported that the family bid $22 million for the company.
However, at the auction on July 8, the Oreck family bid was topped by an offer of $24.4 million bid from Hong Kong-based Techtronic Industries Co. Ltd. (TTI). News reports said that the bid officially came from Royal Manufacturing Company, a TTI business unit.
TTI was founded in 1985 and was listed on the Hong Kong stock exchange in 1990. The company has acquired a number of global floor care appliance brand names, including Hoover, Dirt Devil, and Vax brand floor care products and appliances. The company also owns a number power tool and outdoor products brands with worldwide recognition, including Milwaukee, AEG, Homelite, and Ryobi.
TTI group sales in 2012 were up 5.1% from 2011, to $3.852 billion. TTI's 2012 profit attributable to shareholders grew 32.2% over 2011 to $201 million.
Tom Oreck, former company CEO and son of founder David Oreck, expressed his disappointment in an article by G. Chambers Williams III in the Tennessean. He said the Oreck family hopes TTI does the "right things for the company."
Tom Oreck's understanding, he said in the article, was that TTI intended to hold on to the Oreck manufacturing facility in Cookeville.
TTI's plans for employees at the Nashville Oreck headquarters were not announced. Also unclear is the eventual disposition of the Oreck's 95 retail stores.
The winning TTI bid is expected to be approved in a bankruptcy court hearing on July 16. TTI plans to close the acquisition on July 24.
to Daily News