Woolworths secures Hills deal


mastersWoolworths has won the exclusive rights to distribute the famous Hills brand of clotheslines and garden products.

The retail giant has signed a 19-year deal with Hills, the maker of the famous Hills Hoist clothesline, to distribute its 240 products.

Woolworths plans to sell the products in its Masters and Home Timber hardware chains as well as its Big W stores.

Under the deal, Woolworths will pay an annual licensing fee to Hills for the use of its brand and intellectual property.

The pair did not reveal how much the fee would be, but said it could increase if product sales exceed agreed levels.

“Hills is Australia’s leading laundry, clotheslines and garden spray supplier, with the largest share of the $75 million clothesline category,” Woolworths home improvement boss, Matt Tyson, said in a statement on Thursday.

“They will be a strong partner and another example of Masters range expansion plan.”

Hills CEO, Ted Pretty, said the deal would allow his company to focus on expanding its technology business.

“Additionally, we will enjoy greater certainty of earnings and a strengthening of our profit performance,” he said.

“There will be a positive impact on the balance sheet from the reduced requirement for working capital.”

Shares in Hills were five cents higher at $1.24 at 1106 AEDT, while Woolworths gave up some early gains to fall four cents to $30.86.


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