1989 Chicago Trib Article on Electrolux Buyout of Regina
http://articles.chicagotribune.com/...30144_1_electrolux-sara-lee-corp-door-to-door
Electrolux To Acquire Assets Of Rival Regina
May 22, 1989
MARIETTA, GA. — Electrolux Corp., the privately held vacuum cleaner maker whose door-to-door salesmen have made its name a household word, said Friday that it agreed to acquire the assets of its bankrupt rival Regina Co.
The transaction is subject to a final purchase agreement and the approval of the bankruptcy court, an Electrolux spokesman said. Regina put the purchase price at $65 million to $70 million.
Regina filed for Chapter 11 bankruptcy protection April 26 after months of turmoil stemming from revelations of fraudulent financial statements.
In February, it put itself up for sale after its top two executives pleaded guilty to federal conspiracy charges in a scheme to inflate the company`s profit figures.
Questions about Regina`s financial position arose in September when the company said sales would be below expectations.
The company`s stock, which had traded over the counter, ultimately fell to about $4 a share from a peak of $27 last year.
Regina, based in Rahway, N.J., lost $16.8 million on sales of $190.3 million for the 15-month period ended Sept. 30.
Electrolux, which makes vacuum cleaners and other home-care products at plants in Bristol, Ga., and Piney Flats, Tenn., has about 27,000 employees, the vast majority of whom sell the company`s products door-to-door, a company official said.
The company is owned by its senior executives and units of First Boston Corp. and Wesray Capital Corp., who bought it from Sara Lee Corp. in an October, 1987, leveraged buyout.
