MELBOURNE: Pacific Brands is continuing to streamline its portfolio of brands with the sale of its Dunlop Foams and Sleepmaker businesses to Sleepyhead.
The two businesses sold for approximately $55 million. All Dunlop Foams and Sleepmaker employees will transfer to Sleepyhead.
Pacific Brands will acquire Sleepyhead’s Australian carpet underlay business, Wonderlay, for a nominal amount. This move is designed to complement the Pacific Brands’ carpet underlay business, Dunlop Flooring.
The transaction is expected to be complete in the next three months.
The strategy is part of Pacific Brand’s transformation program announced in 2009, which set out to rationalise and refocus the brand portfolio, optimise the revenue base, rebase overhead cost structures and transform supply chain operations among other initiatives.
It reported that the sale is expected to result in a reduction in Pacific Brands’s sales revenue and EBITA of approximately $160 million and $11 million on a full year basis.
PAC BRANDS: Selling and buying.
