Sold! Pac Brands offloads shoe brands
Pacific Brands has sold a range of its shoe and clothing brands, including Volley, to several buyers for $39 million.
Shoe brands Volley, Hush Puppies, and Clarks has been bought by private equity firm Anchorage Capital Partners, while Dunlop and Slazenger has been sold to the UK company that owns the brands outside of Australia and New Zealand.
Pacific Brands said it will incur a loss of about $30 million on the sale.
The current value of the brands stands at $66 million, it said.
The brands were part of the company’s Brand Collective division, which made a loss of $22.3 million in the 2013/14 year.
The sale continues Pacific Brands’ efforts to increase its focus on its leading brands, Bonds and Sheridan.
“While this has been a complicated divestment to execute, the transactions are all unconditional and should be completed within two weeks with minimal disruption to customers and our core business,” CEO, David Bortolussi, said.
“From a pricing perspective, the divestment represents good value to our shareholders for an unprofitable division.”
He said the sale completes the company’s strategic review, and will significantly improve its growth prospects.
To build shareholder value, Pacific Brands will consider further investment in its remaining brands, its stores and distribution, Bortolussi said.
Pacific Brands shares were up two cents, or four per cent, at 51.5 cents at 1200 AEDT.
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