Home / Knowledge / News / Apparel/Garments / Pacific Brands sells Workwear business to Wesfarmers
Pacific Brands sells Workwear business to Wesfarmers
26
Aug '14
Australia-based Pacific Brands today said that it has entered into an agreement to sell its Workwear business to fellow Aussie company - Wesfarmers Industrial and Safety (WIS), a division of Wesfarmers Limited.

The sale has been done at gross proceeds of $180 million on a cash and debt free basis and is subject to approval from the Australian Competition and Consumer Commission (ACCC) and certain other consents and approvals.

In fiscal year 2013-14, the Workwear segment reported sales of Au $368.5 million and EBIT, before significant items of Au $22.1 million.

As of June 30, 2014, the carrying value of related net assets to be disposed was $140 million and subject to timing, costs of disposal and completion adjustments, Pacific Brands expects to receive a profit on sale of around Au $35 million in the fiscal year ending June 30, 2015.

Pacific Brands said an element of corporate and shared services costs estimated at around Au $3-4 million per annum allocated to Workwear will stay unrecovered, following full transition of the business.

It also added that the net proceeds from the transaction will be applied to reduce net debt.

Pacific Brands CEO said “The sale of Workwear simplifies and focuses Pacific Brands group strategy around maximising the potential of our market leading brands such as Bonds and Sheridan. It also reduces exposure to the challenging industrial market, and restores balance sheet strength to the company.

“We are continuing to consider other options to build shareholder value including further measured investment in retail, category expansion and international distribution, and exploring further options to simplify the business”, Mr Bortolussi said.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 25th May 2016

Vietnam’s fabric & garment exports up 6.7% in Jan-April

Fabric and garment exports from the Southeast Asian nation of Vietnam ...

Textiles | On 25th May 2016

CAIT for joint coalition of trade & industry on GST

Proposing a joint coalition of trade and industry bodies, the...

Apparel/Garments | On 25th May 2016

‘Mauritius is reliable supplier of high-value garments’

The textile and apparel industry in Mauritius has become a reliable...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

What are the latest technological innovations in the spinning industry?...

Frank Gossmann
Rotorcraft AG

What new innovations did Rotorcraft exhibit at the recent textile...

Veronique Lee
Modavanti

Sustainable fashion is not necessarily pocket- friendly. Are consumers...

Eric Scholler
Groz-Beckert

<b><i>The Indian market has huge potential in technical textiles, and by...

Paolo Ocleppo
Sandvik Hyperion

<b><i>Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion...

Iago Castro Asensio
RCfil Distribuciones S.L.

<b><i>Iago Castro Asensio, International Business Manager of RCfil...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
May 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search