HanesBrands To Sell Australian Flooring and Pillow Businesses
HanesBrands has entered into definitive agreements to sell its Australian Dunlop Flooring and Tontine pillow businesses. The businesses are noncore operations acquired as part of the company’s July 2016 purchase of Pacific Brands Limited of Australia. HanesBrands participates in the promotional products industry as supplier Hanes/Champion (PPAI 191138).
Hanes is selling the business and assets of Dunlop Flooring in an all-cash transaction for AUD34 million (US$25 million) to UK-based Victoria PLC (LSE: VCP), a designer, manufacturer and distributor of floor coverings. Dunlop Flooring manufactures and distributes underlay and hard flooring. It is selling the Tontine pillow and quilt business and assets in an all-cash transaction for AUD14 million (US$10 million) to John Cotton Group, a pillow and quilt manufacturer also based in the U.K.
The sales are expected to be completed in the first quarter of 2017, pending customary closing conditions. When Hanes acquired Pacific Brands, the company announced that it intended to divest the noncore Dunlop Flooring and Tontine pillow businesses.
“We are pleased to reach a timely agreement to sell Dunlop and Tontine operations to international leaders in their respective industries,” says Hanes Chief Executive Officer Gerald W. Evans Jr. “This is a good transaction for all involved and will provide clarity and growth potential for our Dunlop Flooring and Tontine employees. We wish them the best in the future.”