Dec. 7 (Bloomberg) -- Whirlpool Corp. agreed to sell Hoover Co., the maker of the first vacuum cleaners 98 years ago, to the Hong Kong-based owner of Dirt Devil for $107 million to focus on selling washing machines and refrigerators.

The sale includes Hoover manufacturing plants in North Canton, Ohio; El Paso, Texas; and Juarez, Mexico, Whirlpool said today in a statement. Hoover will become part of Hong Kong-based Techtronic's floor-care appliance business, which includes Royal and Dirt Devil products.

Whirlpool Chief Executive Officer Jeff Fettig, faced with competition from lower-cost manufacturers overseas, this year bought appliance maker Maytag Corp., eliminated 4,500 jobs, closed plants and sold divisions. Hoover is Whirlpool's third sale this year, and the company is seeking a buyer for its Jade range and cook-top unit.

``Appliances is a mature market, where it's difficult to compete,'' said Ronald Muhlenkamp, president of Muhlenkamp & Co. in Wexford, Pennsylvania, who owns 598,320 Whirlpool shares in his $2.9 billion Muhlenkamp Fund. ``Selling Hoover is the fulfillment of their decision made earlier this year.''

Shares of Whirlpool fell 24 cents to $86.13 at 4:28 p.m. in New York Stock Exchange composite trading. The stock has risen 2.9 percent this year. Techtronic shares rose 14 cents to HK$10.20 in Hong Kong.

No Plant Decision

Techtronic has yet to decide what to do with Hoover's existing manufacturing plants, said Joe Galli, head of Techtronic's floor-care division. While Techtronic does the bulk of its manufacturing in China, it does have plants in the U.S. and Europe, he said.

Whirlpool employs 1,000 people in North Canton, 470 in El Paso and 2,100 in Juarez, said Monica Teague, a company spokeswoman.

``We are all about new products, innovation and marketing,'' Galli said in an interview today. ``Our thrust with Hoover will be to develop a stream of innovative, exciting new products for the consumer.''

The transaction will close by the third quarter of 2007, the companies said.

Techtronic currently is creating new products for the Dirt Devil brand of hand-held vacuums. It plans similar changes for Hoover, he said.

Dirt Devil recently introduced Kone, a cone-shaped, bagless hand vacuum, whose top is the handle of a hidden vacuum. The $39.99-priced item comes in decorator colors such as champagne, light pink, charcoal and plum, according to the company's Web site.

American Brand Icon

Canton, Ohio, janitor and inventor Murray Spangler developed the idea for the so-called ``suction sweeper'' in 1907 and gave the machine to Susan Hoover to try at home. Her husband, Boss Hoover, bought the patent from Spangler and sold the machine door-to-door.

Whirlpool, based in Benton Harbor, Michigan, also shed its Dixie-Narco vending machine and Amana commercial microwave units to focus on appliances, including the Maytag and KitchenAid brands.

To contact the reporter on this story: Carol Wolf in Cleveland at cwolf@bloomberg.net

Last Updated: December 7, 2006 17:07 EST