Kitchen and Bathroom News @ The K&BZine

Whirlpool Offers $17 Per Share for Maytag, 'a 21% Premium over Triton Offer'

On a lazy Sunday in July, when many Americans were enjoying a cool beer at a hog roast, Whirlpool Corporation announced a proposal to acquire Maytag Corporation for $17 per Maytag share, saying that. 'the total value of the proposal represents a 21% premium over the price offered by Triton Acquisition Holding in their current agreement with Maytag'. Maytag was quick to point out that this bid was unsolicited, having already upset Haier in talking to Triton, but said it would consider the offer, the third in as many weeks, in accordance with its duties, and that its Board of Directors has not changed its recommendation of the existing Ripplewood-led transaction.

Two days later, on July 19th, Maytag announced that it has received a letter from Bain Capital Partners LLC, Blackstone Management Associates IV L.L.C. and Haier America Trading, L.L.C. stating that they have determined not to further pursue the transaction to acquire the outstanding shares of Maytag.

This morning (July 22nd) Maytag announced that its Board of Directors was unable to determine that the Whirlpool Corporation proposal announced on July 17 may reasonably be expected to lead to a financially superior transaction nor that is reasonably capable of being completed. Maytag stated that such a determination is a prerequisite under Maytag's existing merger agreement with the Ripplewood-led group for Maytag to furnish information to, and have discussions and negotiations with, Whirlpool. Maytag stated that it will continue to evaluate the Whirlpool proposal. Maytag also said that its Board of Directors has not changed its recommendation of the existing Ripplewood-led transaction. .

The Whirlpool proposal is valued at $2.3 billion in cash and stock (based on assumed debt of $969 million) and is subject to the satisfactory completion of due diligence and negotiation of a mutually acceptable definitive merger agreement.

'This transaction will provide Maytag shareholders with superior value compared to the current offer,' said Jeff M. Fettig (pictured), Whirlpool’s chairman, president and CEO. 'Equally important, the combination fits Whirlpool’s strategy and capabilities, will create strong value for our shareholders and provide direct benefits to consumers and trade customers.'

Whirlpool also announced that, based on its assessment of the current environment, it continues to expect full-year 2005 earnings per share of $5.90 to $6.10, cash provided by operating activities of approximately $860 million, and free cash flow in the $250 to $300 million range (see table below).
Whirlpool Corporation is the world’s leading manufacturer and marketer of major home appliances, with annual sales of over $13 billion, 68,000 employees, and nearly 50 manufacturing and technology research centers around the globe. The company markets Whirlpool, KitchenAid, Brastemp, Bauknecht, Consul and other major brand names to consumers in more than 170 countries.

In a letter to Ralph Hake, Maytag Chairman & CEO and Howard Clark, Chairman, Special Committee of the Board of Directors, Jeff Hettig said:

'Our proposal is demonstrably superior to Triton's, both financially and strategically. It will provide the immediate opportunity for your shareholders to realize substantially greater value for their shares -- a 21% premium over the Triton price. Moreover, your shareholders will have the opportunity to realize greater long-term value through the truly unique attributes of a Whirlpool-Maytag combination.

As you know, we operate in a highly competitive marketplace where trade customers and consumers have a large and growing choice of brands, products and suppliers, including a growing number of foreign appliance companies. Together we can achieve substantial efficiencies that will deliver cost savings, increased innovation and better asset utilization. With these efficiencies, and Whirlpool's track record of -- and commitment to -- investing in innovation, quality and customer service, our combined company will be well positioned to offer great value to consumers and to trade customers. And as part of Whirlpool, we can ensure that Maytag remains a trusted brand for years to come.

Our proposal represents a 'Company Takeover Proposal' that clearly meets the standards set forth in Section 5.02(c) of the existing merger agreement. First, it is more favorable to Maytag shareholders from a financial point of view than the pending sale. Second, it is reasonably capable of being completed, taking into account all financial, regulatory, legal and other aspects of the proposal.
Accordingly, it allows Maytag to provide us with due diligence and to participate in negotiations and discussions with us.

Our understanding is that, because of the notice provisions of your agreement with Triton, we must be in a position to submit our firm offer no later than August 9, 2005 so that you will be in a position to terminate the agreement with Triton and enter into the superior merger agreement with Whirlpool prior to your shareholders meeting. We are prepared to meet this deadline. However, as each day forward is critically important to our doing so, your board must take action to permit us to begin our due diligence immediately.

We trust you and Maytag's other directors will respond immediately and positively to our proposal. We look forward to working with you to achieve what will be a compelling transaction for the shareholders and customers of our two companies.'

Which? Looks at Washer-driers

Which? has updated its information on washer driers, and has published a new report online. It says: 'If space in your kitchen is at a premium, a washer-drier can do two tasks in half the space. But they have some practical weaknesses which should make you think twice before buying'.

'Washer-driers are a compromise – they’re essentially washing machines with drying functions added on. That’s borne out by our test results, as the better washer-driers match our Best Buy washing machines for washing and spin-drying, but are decidedly second-rate at drying. Not only do they take a lot longer than a tumble drier to dry clothes, but they often leave clothes much more creased.

'Another practical consideration is that none of those we tested can wash and dry the same volume of clothes. That means two rounds of drying for each full load of washing. And, given that they take longer to dry a load of clothes than a tumble drier, this could mean that a washer-drier gives you a serious case of the wash-day blues.

'If you can live with those drawbacks – or you don’t have a choice – the good news is that a washer-drier will cost less than the combined cost of a typical middle-of-the-range washing machine and tumble drier. And running costs for a tumble drier are about the same as those for a washing machine and tumble drier added together.

Which? further examines the claims made by some manufacturers particularly in regard to 'special features':

Large drum
If you wash or dry with a full load in a larger machine, you have the added bonus that you use less energy, water and time per item. However, if you don’t fill the drum up, the larger machines can be less efficient, because they use so much water in each wash.

Noise
Most machines are reasonably quiet during washing these days, though it’s still worth looking for a quiet one. When the machines are spinning and rinsing, they can make a fair bit of noise. And some of the washer-driers were fairly noisy when drying, too, either from the noise of the motor, or from the movement of air and clothes inside the drum.

Quick wash
Don’t assume that, just because a machine has a short wash, you’ll save much time. One machine's short cycle lasts two hours and four minutes – only three minutes less than its standard wash. Its short wash cycle is longer than some machines’ standard cycle.

Other feature settings which get the Which? treatment are: 'Delicates and woollens' , which it finds varies a lot, 'Reduced-ironing', wich sometimes makes no difference to the clothes at all, and 'Fuzzy logic and other wash systems', which it describes as 'a lot of fancy names'.

'All these features vary in how effective they are. For example, one fuzzy-logic system might be much more sophisticated than another. The safest option is just to check out our test results', Which? says.

http://sub.which.net/home.jsp

Designed by Mark Wilkinson and created by Perrin & Rowe, Oasis ‘brings together two of England's most exclusive and aspirational brands’.

‘So called for its refreshing, distinctive design that stands out within an all too familiar, dull and dreary desert of kitchen brassware, Oasis blends the very best of British artistry and craftsmanship to create a kitchen tap as beautiful as it is functional.’ says the company.

Over the last two years, Oasis has been a meeting of minds; a real-life, hands-on project that has absorbed and occupied two of the most influential figures within the British kitchen industry.

Mark Wilkinson - the creator of exquisitely designed, traditionally crafted kitchens, bathrooms, bedrooms and studies of the finest quality. Perrin & Rowe - the inspirational partnership of Bob Perrin and Greg Rowe that for over a decade, has been responsible for beautiful kitchen and bathroom brassware.

Their shared subjects? Intensity and passion for design. An enduring fascination with the mastery of raw materials. A deep sense of pride in being British manufacturers. And an irrepressible desire to continue to create and challenge. Mutual admiration was never going to be far away.

In 2003, Greg Rowe invited Mark Wilkinson, who has often spoken of his furniture as being his 'own, very special way of communicating', to apply his genius for design and detail to brassware. A collection of imaginative pencil sketches were soon produced.

Oasis was born.

Bob Perrin, who today declares Oasis as the very best kind of modern classic, transformed Mark's drawings into technical schematics. And, over a couple of years and clutch of engineering challenges later, Oasis evolved into the sleek and deceptively pure form that was recently unveiled at the Daily Telegraph House & Garden Fair.

Oasis - a summary
* Oasis was designed by Mark Wilkinson and created by Perrin & Rowe
* Oasis is exclusively manufactured by Perrin & Rowe in England within an ISO 9001 accredited process
* all Oasis kitchen taps are individually quality tested
* Oasis taps are made from solid brass
* Oasis taps feature aerators in their spouts to promote a soft, 'bubbly' flow of water and use high quality, hard wearing ceramic disc valves, which give an even, precise feel when turning the tap on and off
* Oasis taps are plated to thicknesses recognised as being well in excess of industry requirements and are available in chrome, nickel (a soft, golden glow) and pewter (a subtle matt) finishes
* Oasis taps have a throw of 205mm, are compatible with standard UK tap sizing and are suitable for the majority of sinks and basins
* Oasis has a recommended starting retail price of £398.33 including VAT
* for stockist enquiries, telephone Perrin & Rowe 01708 526361 or visit http://www.perrinandrowe.com

Electrolux Announces Two Year Sponsorship of Newly Promoted Luton Town Football Club

Electrolux has announced a significant investment in the Luton Community with its Two Year sponsorship of newly promoted Luton Town Football Club... now in the Football League Coca Cola Championship.

Electrolux's heritage with Luton as a town dates back to 1927, the site for the first Electrolux factory outside Sweden. Since then Electrolux has had either manufacturing or management links within the area. This month the Electrolux UK White Goods Business is moving 'back to its roots', onto the site in Oakley Road, and the sponsorship of Luton Town Football Club underlines the group's commitment to the area and its community.

‘Champions of Coca Cola League One, a club record of 98 points - 29 wins and 87 goals - what a fantastic season for the club. The fit with Electrolux 'coming home', and to link our business with the community was just too good an opportunity to miss,’ comments Andy Mackay, Brand and Marketing Director, Electrolux UK. ‘We're really proud to be supporting Luton Town in this exciting stage of both their history and ours .. two winners together’.

Electrolux has taken full home and away Shirt Sponsorship rights and the brand will also be promoted on Pitch Perimeter Boards, Season ticket covers, Club Programmes and the Tunnel Interview Backdrop.

Luton Town Club Chairman, Bill Tomlins says of the newly acquired sponsorship, ‘This is a defining moment for the team. We are now in the Coca Cola Championship with the backing of one of the world's biggest blue chip companies. We are delighted to have Electrolux on board with us - a great boost to start off the new season and the challenges ahead’.

Tel: 08705 950 950
Web: http://www.electrolux.co.uk

David joins PWS following extensive sales management expertise with a number of global companies, including Raleigh Ltd and Mattel.

With a wealth of experience in customer and man management across a number of business sectors David is looking forward to using his skills to make a strong contribution to PWS' continued growth as a business.

Comments John Lennon, Sales & Marketing Director at PWS, 'The position of National Sales Manager at PWS is a key role and I am confident David has the knowledge and skills to drive forward our planned programme of product and sales development'.

David takes over from Derrick Smith, who after 10 years at PWS' sales helm has set up his own interiors business.

De Dietrich, the specialist brand for kitchen specialists and independents, has restructured its sales operation in order to offer a more effective bespoke service to the wide range of dealers who regularly buy through its Area Sales Managers. It has redefined its key regions, which will result in more time for ASM's to maintain the relationships with its loyalty customer base.

It has also appointed Swift Distribution, as of 1st July 2005, in order to provide a faster and effective alternative sales solution for dealers with occasional orders. Swift will be able to give an immediate response to those independent dealers who already buy successfully through this channel and who wish to further enhance their offer by selling De Dietrich products.

Being a niche brand, which has for over 25 years maintained an ethos of actively not selling through the major multiples or DIY stores, its success is driven by the quality personalised service it can offer and the ability to fully understand its customers' business needs and requirements on a daily basis.

With its widest ever range and attractive promotions in place, including a free two year guarantee available until the end of the year, free saucepan set with all touch control induction and vitroceramic hobs and a free Home Demonstration service for customers who buy a pyrolytic or catalytic oven plus three additional appliances, De Dietrich continues to celebrate its 25th anniversary year.

De Dietrich trade enquiries: 01256 308 067
Email: mailto:builtinsales@elcobrandt.com
Web: http://www.dedietrich.co.uk

Bathroom manufacturer Shires Bathrooms recently strengthened its links with the social housing sector after exhibiting at The Chartered Institute of Housing Conference and Exhibition. The event, which is the largest of its kind in Europe, took place from Tuesday, 21st to Friday, 24th June at the Harrogate International Centre.

It was the first time Shires Bathrooms had participated at the event and it was such a success that it has already reserved its place for next year's exhibition but with a bigger stand.

The exhibition was a platform for Shires Bathrooms to display a full range of products that are suited specifically to this market place, including steel and acrylic baths, sanitaryware, brassware, shower enclosures and bath screens. The company was also able to demonstrate its knowledge of the industry and meet with key decision makers and influencers within the industry.

Participating at the event was recognised by Shires Bathrooms as key and part of the company's ongoing strategy to develop its services in the social housing sector.

Kenny Cameron, general manager at Shires Limited, comments: ‘The show was a tremendous success and has opened up many avenues for us to explore. Our commitment to the social housing sector was demonstrated through our presence at the event and it proved a most worthwhile event for us’.

Tel: 0870 160 4414
Web: http://www.shires-bathrooms.com

We always seem to be getting our umbrellas out, but experts tell us it’s the 'wrong sort of rain.' So, why is it that this summer our water usage is being restricted and what can we do to help save something we take for granted?

One of the simplest steps to take in order to help save water is to have a shower rather than a bath. A five-minute shower uses about a third of the water of a bath, making a big difference to household water use.

Making small lifestyle changes in order to preserve water is likely to become the norm as potential water shortages continue to be a concern. Factors such as hotter summers, ‘harder’ rain as well as the rise in the use of dishwashers and washing machines all affect water supplies.

Shower surround and bath screen manufacturer, Aqualux, is supporting new calls to conserve water following one of the driest winters on record.

Aqualux is urging people to follow the advice of the Environment Agency which details ways in which people can change their water-wasting habits, but also to consider changing their bathing habits:

• Save 1000 gallons a month by showering for five minutes or less
• Take a short shower - between 5-10 minutes uses around 25 gallons of water instead of more than 35 gallons used for a shower lasting more than ten minutes
• You can even put a bucket in the shower to catch any waste water – and use it to water houseplants or the garden!
• Dripping taps in bathrooms can waste up to four litres of water a day. Replace worn tap washers for a quick and cheap way of saving water.

Sandra Hyde, marketing manager at Aqualux commented: 'Unless people are prepared to change the way they use water in their homes, hosepipe bans and enforced water meters may become more frequent. Using showers is a convenient way of helping to save water, and it is also a cooler option for the summer months!'

Aqualux is holding an environmental day later on this month to raise awareness of energy and water-saving issues, to show people how they can do their bit for the environment.

Tel: 0870 241 6131
Web: http://www.aqualux.co.uk

The Kitchen Bathroom Bedroom National Training Group has appointed a chair - Uwe Hanneck, chief executive officer of BSH Home Appliances Ltd.

The NTG, initially formed late last year and set to launch officially at KBB 2006, already has a training co-ordinator in post and plans to launch some training programmes by the end of this year.

The decision by Mr Hanneck to accept the post of chair has been welcomed by Graham Hayden, managing director of the Kitchen Bathroom Bedroom Specialists Association.

‘This is excellent news for the interiors industry as a whole,’ said Graham. ‘Uwe Hanneck is a highly-respected businessman who will help steer the NTG firmly in the right direction as it gains momentum in providing essential training that has been needed for so long.

‘We were delighted that Renee Mascari was recently able to join the NTG as training co-ordinator and with Uwe at the helm we have every confidence that the group will become a major force to be reckoned with.’

Uwe Hanneck is responsible for the overall management and strategic development of BSH's business in the UK and in Ireland. He has developed BSH, the umbrella organisation for leading kitchen appliance brands Bosch, Siemens, Neff, Gaggenau and now Viva! in the UK, into the second largest supplier of domestic appliances in the country. In 2004 he became chairman of Repic Ltd and he was recently elected chairman of AMDEA, the domestic appliance manufacturers trade association.

‘I am very much looking forward to my active involvement in the newly-founded KBB NTG,’ said Mr Hanneck. ‘This is such an important initiative that is long overdue. We must bring together all training providers to ensure that all companies within the interiors industry can benefit from appropriate approved training, education and qualifications.

‘I know we have the committed backing of the industry in our goal to set best standards, upskill the workforce, develop talent and ultimately bring about the demise of rogue traders.

‘We have much work to do but I know we can achieve our goals. This is a challenge I will relish and one that is so worthwhile, so important to everyone who wants to see our industry go from strength to strength.’

German manufacturer Rational was pleased to learn one of its loyal retailers, The Vale Group, based in Evesham, Worcestershire has been busy celebrating a significant landmark.

Tony Haines has been with the company for a remarkable 30 years. To celebrate such a landmark, Directors of The Vale Group, Vernon and Christine Powell arranged a surprise cruise along the river of Avon on board the 'Spirit of Freedom'.

Totally oblivious, Tony, an ex sub-mariner in the Royal Navy, arrived at Evesham's Waterside to find his colleagues and some past employees all aboard waiting to greet him.

As well as a plentiful buffet and a splendidly decorated cake Tony was presented with a gold watch and an engraved crystal rose bowl to honour his years of service to the company.

Craig Burgess-Allan, Sales and Marketing Manager for Rational UK comments:

'We at >rational< would like to congratulate Tony on his milestone service not only to The Vale Group but also to the kitchen Industry. His commitment and dedication is certainly something to commemorate and we wish him many more happy years.'

Tel: 01543 459459
Web: http://www.rational.de

Vincent Sheppard has announced the appointment of Richard Heath Furniture Ltd, as its sole distributor for Ireland. Vincent Sheppard is established in over 25 countries and says that it is renowned throughout the world as the leading designer and manufacturer of Lloyd Loom furniture. The extensive range encompasses dining chairs and beds to outdoor furniture in both rattan and beech wood frames.

Managing director Richard Heath stated 'This is a great opportunity to bring a top quality furniture brand to Ireland and we are confident that Vincent Sheppard Furniture will meet the demands of the Northern and Southern Irish Markets with its contemporary and traditional designs. We very much look forward to establishing the Vincent Sheppard brand in Ireland.'

Ashley Bathrooms has introduced lifetime guarantees across its entire range of sanitaryware. Ashley initiated the increase from its 'standard' twenty-five years as a definitive statement of quality in its 'Made in Britain' products, which include three new contemporary suites launched this year.

Named after local villages surrounding the company's Derbyshire-based head office, the new Kedleston, Repton and Hazelwood collections have met with a lot of interest from dealers.

These are the first new lines to come out of Ashley's enlarged Stoke on Trent manufacturing facility and are the outcome of over £1million investment in new technology at the plant. A second phase of new product development is now underway.

David Smith, Ashley Bathroom's Marketing Director says, ‘As the last remaining British-owned sanitaryware factory in the potteries, Ashley is a responsible employer producing world class products - I'm very proud of our genuine 'made in Britain' credentials. An Ashley suite is an investment for life - guaranteed.’

Tel: 01332 830 404
Web: http://www.ashleybathrooms.com

Led by Russell and Janette Harris, the conversion of the Lymm Water Tower in Lymm, Chesire has transformed a dilapidated Victorian stone landmark into 'an essay in calm modernism.'

The tower was purchased by the Harris family six years ago with the idea of rescuing the building, and creating a minimalist family home of the future and making a contribution to safeguarding local heritage.

DuPont™ Corian® enabled the Harris' to achieve the clean, white, pared-down look they wanted. Corian® was used for a number of applications throughout the tower, including the kitchen, the custom-made dining table, coatroom, window sills and coffee table.

'I have always loved Corian® and jumped at the chance to use it in the tower. What's fantastic about Corian® is that it gets better with age; we love the way it can be curved and shaped.

Corian® is, without a doubt, one of the most successful materials in the project,' Russell Harris said.

Best known for its quality surfacing, edging and components for the modern furniture industry, European Decorative Products (EDP) has another side to the business which is a flexible and versatile supply source for packaging materials with an on-line service.

Particularly useful for the growing distribution sector or any furniture manufacturer needing dispatch any item to supplement a main delivery, EDP's range of packaging products covers every eventuality.

The website – http://www.cardboard-box.net - provides a full list and description of products which include boxes for packing, moving or special functions. Also padded envelopes, wrapping papers, mailing sacks and bubble wrap. Ancillary products include stickers, heat sealers and tape guns.

The website is easy to navigate with credit card payment, and 48 hour delivery to anywhere in the UK and Ireland.

EDP have a similar website for the on-line viewing and purchasing of furniture handles at: http://www.handle-company.co.uk.

Tel: 01702 618877
Email: mailto:edpgroup@btconnect.com
Web: http://www.edpgroup.co.uk