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INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS Local 1985

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS Local 1985. Proposed Hoover Company Buyout James Repace – President IBEW - Local 1985 Eric Bowles – Director of Economic Development City of North Canton. Hoover Company History. In continuous operation since 1908

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INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS Local 1985

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  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 Maytag’s 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 Maytag’s 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

  9. Consultant Action • Identification of a Worker Friendly Equity Fund • Submission of non-binding offer to purchase by equity fund to Maytag’s 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 Maytag’s 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

  11. Thank you!

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