July 25, 2013 — Royal Appliance Manufacturing Co. (“Royal”) has closed its previously announced acquisition of Oreck Corporation (“Oreck”). Royal received approval from the U.S. Bankruptcy Court to buy the assets of bankrupt vacuum maker for $17.25 million in cash, plus assumed liabilities. Judge Keith Lundin of the U.S. Bankruptcy Court for the Middle District of Tennessee in Nashville approved the sale at a hearing on July 16.

The Oreck brand, founded 50 years ago, earned category leading consumer loyalty by delivering high quality premium products and backing up those products with unbeatable customer service. Oreck filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Tennessee in Nashville on May 6. The filing came after a series of moves meant to resuscitate the company, which only had 4 percent of the vacuum market, in terms of sales, in 2012. Oreck had also changed CEOs, switched its headquarters and tried to modernize by manufacturing bagless vacuums.

Royal Appliance Manufacturing Co. beat out the Oreck family, which placed a stalking horse bid that included $14.5 million in cash, plus assumption of liabilities, for a total of $21.9 million, on May 16. The family placed its bid through Oreck Acquisition Holdings LLC. At a July 8 auction, the family was outbid when Royal, bidding as Oreck Acquisition Co. LLC, upped the cash portion of its bid to $17.25 million, court documents show.

Royal plans to maintain Oreck’s Cookeville, Tenn., facility. Oreck also has a facility in Nashville. The buyer is a subsidiary of TTI Group, a Hong Kong-based company that makes Hoover and Dirt Devil vacuums, as well as other consumer, professional and industrial products. “Oreck is a great brand representing high quality innovative products and great customer service,” Simon Lawson, Global President, TTI Floor Care said. “The Cookeville plant has unique capabilities and represents a strong fit with our existing portfolio of production facilitates.”

Sawaya Segalas & Co., LLC, a leading consumer industry investment bank, acted as exclusive financial advisor to Oreck Corporation in this transaction.

About Oreck Corporation
Oreck Corporation is a leading manufacturer and multi-channel distributor of premium household and commercial vacuum cleaners, air purifiers, steam cleaners and other products designed to make cleaning easy. Founded in 1963 and headquartered in Nashville, TN, Oreck is one of the most recognized brands in the U.S. vacuum cleaners market, with strong brand recognition and a longstanding reputation for high quality products and superior customer service. Corporate website: www.oreck.com.

About the TTI Group
Founded in 1985 and listed on the Stock Exchange of Hong Kong Limited in 1990, TTI is a world-class leader in quality consumer, professional and industrial products marketed to the home improvement, hardware, and construction industries. An unrelenting strategic focus on Powerful Brands, Innovative Products, Exceptional People, and Operational Excellence drives our success. TTI’s powerful brand portfolio includes MILWAUKEE®, AEG®, and RYOBI® power tools, accessories and hand tools, RYOBI® and HOMELITE® outdoor products, and HOOVER®, DIRT DEVIL® and VAX® floor care and appliances.