McPhersons will divest its Home Appliance business to Glen Dimplex Australia Pty Limited. The divestment is consistent with McPherson’s strategy to exit non core operations and grow its core business in health, wellness and beauty markets.
Net transaction consideration is estimated at circa AUD28m. Based on a forecast FY2018 EBIT for the Home Appliance business of AUD4m, the net consideration represents an EBIT multiple of approximately 7 times.
“The funds generated from the transaction will be used to buy back the outstanding AUD25.0m in bonds at 31 March 2018. Group net debt is forecast to be approximately AUD5m at 30 June 2018, compared with AUD36.4m at 30 June 2017.”
For further announcements from the company, please visit the McPherson’s website.
Director - Credit Research, Industrials and Corporates. Will has over 15 years’ experience in credit and fixed income markets, including 6 in London, working at fund managers, banks and government treasury.