INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS Local 1985

1
INTERNATIONAL BROTHERHOOD OF ELECTRICAL
WORKERSLocal 1985

• Proposed Hoover Company
• Buyout
• James Repace President IBEW - Local 1985
• Eric Bowles Director of Economic Development
• City of North Canton

2
Hoover Company History

• In continuous operation since 1908
• First floor care products company
• Company History interlinked with City of North
  Canton
• Once Worldwide Company with facilities in the
  United States, Europe, and Canada

3
Hoover Company Decline

• Sold to investment group Chicago Pacific in 1986
• Sold to Maytag Corporation in 1989
• Continued employment reductions
• Hurt by Maytags poor management and One Company
  Concept

4
Hoover Products Manufactured In North Canton

• Oasis Steam-Vacuum
• Gamma Cell
• Atlas
• Canister vacuums
• Commercial upright vacuums
• Floor scrubber/polisher machines

5
Current Issues

• Proposed sale of Hoover by Maytag Announced
  February 2, 2006
• Worries of possible new ownership and shut down
  of North Canton Facility
• Purchase of Maytag by Whirlpool Corporation
  March 2006

6
IBEW Local 1985 Action

• Proactive steps to identify resources to assist
  Union Leadership with possible employee purchase
• Meeting with OEOC Staff
• Partnership with City of North Canton

7
Local 1985/North Canton Partnership

• Worked together to assemble preliminary
  feasibility study application for OEOC Program
  Funding
• Normal process interrupted by Maytags sale
  announcement
• Entered into process of obtaining a retainer
  agreement with qualified consultant

8
Partnership continued

• Scope of Services developed with help of OEOC
  Staff
• Contacted four consulting firms, sent out scope
  of services, and held interviews between February
  6th and February 15th
• Committee met on February 17th to select
  consultant Duff Phelps/Ownership Associates
• Held meetings (2) with Union Membership on March
  9th to vote on Preliminary Feasibility process
  affirmative vote
• Consultant contract signed April 7, 2006

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Consultant Action

• Identification of a Worker Friendly Equity Fund
• Submission of non-binding offer to purchase by
  equity fund to Maytags investment banker Lazard
• Received Book of financial information on
  Hoover Company from Lazard
• Currently analyzing those records to determine
  feasibility of employee stock ownership purchase

10
Current Status

• Study of financials ongoing but preliminary work
  is positive
• Purchase of Maytag by Whirlpool completed on
  Friday, March 31st
• Whirlpool has indicated they are going ahead with
  Maytags sale process but will evaluate the floor
  care business in 60-90 days
• Suggested that Whirlpool may make Hoover a
  stand-alone company again
• Promised ongoing communication with Union
• Local 1985 is proceeding forward with ESOP
  process

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Thank you!