News Flash

Pacific Brands buys out bed linen distributor Sheridan

22 Sep '05

3 min read

Sheridan has been developing a global supply chain via its strategic partner, Li & Fung Limited, that provides the flexibility to offer a wider range of products. Pacific Brands' Asian supply chain strategy will be able to enhance this development.

Sheridan CEO, Mr. Peter Sitch informed that the sale to Pacific Brands of Sheridan, which is the leading supplier of branded textiles in Australia, is extremely positive for their employees, customers and suppliers. Pacific Brands have a strong consumer marketing orientation, a powerful supply chain and are well positioned to further strengthen their brands and continue the transformation of the Sheridan business.

Pacific Brands will pay approximately $61.8m million cash (dependant on Sheridan's net asset position on completion) for the acquisition. It will be financed through existing debt facilities and will comprise:

• 100% of the issued shares of Sheridan Australia Pty Limited, Sheridan NZ Limited and Sheridan UK Limited;
• the assumption of the liabilities of the acquired business, except for secured debt; and
• certain assets owned by other entities within the Sheridan Group of companies (primarily business contracts, trademarks and other intellectual property rights registered in many countries throughout the world).

Further financial investment in Sheridan will be made to:
• improve customer service levels;
• further grow its consumer brand awareness;

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