GUD Holdings is shedding its majority holding in its under-performing Sunbeam brand, part of a strategy to withdrawal from small appliances.
The Australian company’s 51% in Sunbeam Corporation Limited and its 49% share of Jarden Consumer Solutions (Asia) Limited are going to its joint venture partner, the US-based Sunbeam Products.
GUD shares jumped almost 10% to $7.92 on the news.
Sunbeam has been an Australia brand since 1902 and was the name for the original Mixmaster kitchen utensil released in the 1940s.
GUD, which sells appliances, automotive parts and office storage equipment, expects cash of about $A35 million from the deal when it is completed in July.
GUD and JCS entered into a joint venture for the Australasian and Asian small appliance businesses in November 2014.
The sale of the joint venture interests represents GUD’s withdrawal from the small appliance industry after a 20 years. It bought the Sunbeam Victa Corporation in 1996.
GUD in January wound back its full year earnings guidance following a poor performance from Sunbeam and Dexion brands.
In its half year results, the company posted profit of just $1.7 million, down from $17.3 million. The result includes $18.5 million of after tax impairment costs, mostly goodwill in Dexion’s industrial and office storage equipment.
GUD is expecting full year underlying EBIT (earnings before interest and tax) of between $82 million to $88 million. This compares with previous guidance of about $90 million.
Its shares last traded at $7.22, down from a 12-month high of $10.18.