• Linkdin
Data-Driven Analysis to Identify the Existing and Upcoming Trends in Polyester Fiber Market. Request Report down-aerrow Data-Driven Analysis to Identify the Existing and Upcoming Trends in Polyester Fiber Market. Request Report down-aerrow
         Data-Driven Analysis to Identify the Existing and Upcoming Trends in Polyester Fiber Market. Request Report down-aerrow Data-Driven Analysis to Identify the Existing and Upcoming Trends in Polyester Fiber Market. Request Report down-aerrow
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Pacific Brands divests Dunlop Foams and Sleepmaker

04 Nov '10
3 min read

Pacific Brands Limited announced that it has entered into an agreement to sell its Dunlop Foams and Sleepmaker businesses to Sleepyhead for gross proceeds of approximately $55 million and to acquire Sleepyhead's Australian carpet underlay business (Wonderlay) for a nominal amount. All Dunlop Foams and Sleepmaker employees will transfer with the businesses to Sleepyhead.

The divestment is in line with Pacific Brands 2010 transformation program announced last year. Dunlop Foams and Sleepmaker are not part of Pacific Brands' long-term strategic focus and the price and terms agreed are commercially attractive. The acquisition of Wonderlay will be a good addition to Pacific Brands' leading carpet underlay business, Dunlop Flooring.

The transaction is expected to be completed during the next three months. The sale of the businesses to Sleepyhead and the acquisition of Wonderlay are subject to ACCC approval.

The sale of Dunlop Foams and Sleepmaker are expected to result in a reduction in Pacific
Brands' sales revenue and EBITA of approximately $160 million and $11 million respectively on a full year basis. The sale proceeds will exceed net tangible assets, however Pacific Brands will incur a one-off non-cash loss on sale in the order of $35 million on completion of this transaction.

As indicated previously, Pacific Brands has recently undertaken a capital structure review and is considering debt refinancing, dividend reinstatement and other capital management options taking into account the company's performance, financial position and outlook. The expected proceeds from this divestment will be incorporated in those considerations. The company will update the market in relation to these matters at its forthcoming half year results release.

UBS acted as financial adviser and Minter Ellison acted as legal adviser to Pacific Brands in relation to the transaction.

Dunlop Foams is Australia's leading manufacturer, converter and distributor of flexible slabstock foam. Dunlop Foams has production and converting facilities in all states of Australia, supplying customers in the bedding, furniture and other industries. Its products are sold under brands such as Enduro, Luxura, Opulence, Stamina, Marathon, Hypersoft, Viscoflext, and ViscoLux.

Sleepmaker is one of Australia's leading bedding manufacturers with manufacturing facilities in all states of Australia except for South Australia. Sleepmaker supplies beds to retail and commercial customers under brands such as Sleepmaker, Dunlopillo and Simmons.

Sleepyhead is one of Australia and New Zealand's premier mattress and foam manufacturing businesses. As a privately owned company, Sleepyhead has been at the forefront of bed manufacturing and innovation since it was founded by the current owners' forbearers more than 75 years ago. Sleepyhead employs more than 1,000 people at six manufacturing facilities across Australia and New Zealand.

Pacific Brands Limited

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search