Lately, it has faced competition from cheaper Chinese rivals, including Picea, putting pressure on sales and forcing iRobot to scale back headcount. A management shake-up in early 2024 saw the departure of its co-founder as chief executive.
Amazon proposed buying the corporate in 2023, seeing synergy with its Alexa-powered smart speakers and Ring doorbells.
EU regulators, nonetheless, pushed back on the deal, raising concerns it could result in reduced visibility for rival vacuum cleaner brands on Amazon’s website.
Amazon and iRobot terminated the deal little greater than a month after Adobe’s $10 billion purchase of design software maker Figma was abandoned amid heightened US antitrust scrutiny under Joe Biden’s administration.
Although iRobot received $94 million in compensation for the termination of its cope with Amazon, a good portion was used to pay advisory fees and repay a part of a $200 million loan from private equity group Carlyle.
Picea’s Hong Kong subsidiary acquired the remaining $191 million of debt from Carlyle last month. On the time, iRobot already owed Picea $161.5 million for manufacturing services, nearly $91 million of which was overdue.
Alvarez & Marsal is serving as iRobot’s investment banker and financial adviser. The corporate is receiving legal advice from Paul, Weiss, Rifkind, Wharton & Garrison.
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