NEWTON, Iowa — Maytag Corp. shareholders on Thursday approved the company's sale to rival appliance-maker Whirlpool Corp., marking the end of independence for the iconic home-appliance maker that failed to overcome cheaper competitors and a waning of its trademark image for dependability.
If authorized by the government, Whirlpool will buy Maytag, founded in 1893 by farm-tool maker Fred Maytag, for about $1.79 billion in cash and stock.
The Maytag brand was a television fixture for decades in commercials featuring "Ol' Lonely," the repairman with nothing to do because the company's appliances were so dependable.
Preliminary totals show that of 80.3 million outstanding shares, 54.98 million shares, or 68.5 percent, approved the merger. The company said 97.8 percent of voted shares approved the deal.
Maytag shareholders will receive $21 a share, payable half in cash and half in a fraction of Whirlpool stock, depending on the value of Whirlpool shares when the deal closes.
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Fred Maytag's wooden-tub washing machine was introduced in 1907. His innovative designs swept the nation and the company has remained a home-appliance leader for a century.
The vote was a grim result for longtime Maytag workers and retirees.
"I feel like I attended a funeral today," said Judy Mulbrook, of Milford, Iowa, who retired from Maytag in 2003 after 32 years. "I feel like the death happened in the past year and this is putting everything to rest."
In recent years, Maytag's profitability has languished as competitors outsourced parts and moved production to low-cost factories. Maytag was slow to adopt cost-saving measures and fell behind as competitors wooed consumers away with new appliance designs and features.
Some shareholders were bitter about Maytag's declining performance.
Lonnie White, who retired from Maytag and as a UAW union representative, said managers focused on cutting costs and jobs instead of maintaining the quality and dependability traits that were the company's trademark.
"If they had concentrated on that . . . we wouldn't be here today," White said.
Maytag, the nation's third-largest appliance manufacturer, became the target of a bidding battle when a New York-based investment group offered to buy the company for $1.13 billion in May. In June, Chinese appliance-maker Haier America stepped in with a $1.28 billion offer, but it was withdrawn when Whirlpool offered $1.37 billion.
Whirlpool increased its offer three times until Maytag agreed to consider the deal.
Whirlpool, based in Benton Harbor, Mich., also will assume Maytag's debt of $977 million.
Maytag CEO Ralph Hake credited employees and loyal customers for more than a century of success for the company. He said if regulators approve the merger, Maytag as a company will cease to exist.
Christina Nedrow, A representative of the International Association of Machinists from Chicago, said it's wrong that Hake will leave Maytag with more than $10 million in bonuses and benefits after poorly managing the company.
Shares of Whirlpool rose 29 cents to close at $84.17 on the New York Stock Exchange, where Maytag shares gained 33 cents, or 1.8 percent, to $19.10.