Royal Appliance Manufacturing Co., the maker of Dirt Devil vacuums and other cleaning appliances, said it agreed to be acquired by Hong Kong's TechTronic Industries Co. Ltd. for U.S. $105 million in cash. The agreement provides for Royal shareholders to receive $7.37 per share in cash.
Royal will operate as a wholly owned subsidiary of TechTronic, which already makes Ryobi power tools, Homelite lawn and garden equipment, and VAX floor care appliances. Michael Merriman, CEO of Royal, will continue to lead the subsidiary. The transaction is expected to close in March 2003. Royal's board of directors has unanimously approved the deal, and its two largest shareholders, who own about 31 percent of Royal's outstanding stock, have also approved it. (Reuters)
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