Maytag expects the deal to be finalized in the third quarter and estimates the addition of Amana's major appliance and commercial microwave oven businesses will boost consolidated annual sales by about $900 million.
The sale's effect on advertising is not yet known. In 2000, Maytag spent $91 million through its account with Bcom3 Group's Leo Burnett, Chicago, while Amana spent $11.7 million through Aegis Group's Carat North America, Chicago, according to Taylor Nelson Sofres' CMR.
This year, Maytag has maintained its relationship with Leo Burnett, while Amana has handled its advertising in house, though in cooperation with independent dealers.
"It's really too early to say what might happen in advertising, assuming we get regulatory approval to move forward with the sale," said Maytag spokeman Jim Powell. "We'll be investigating ways to integrate the businesses."
Maytag's main brands include Maytag, Hoover, Jenn-Air and Dixie-Narco. -- Abbey Klaassen
Copyright June 2001, Crain Communications Inc.