SYDNEY, AUSTRALIA: Pental and its wholly owned subsidiary Pental Products entered into binding transaction agreements to sell the assets of the Pental Consumer Products business (excluding Duracell and Bondi Soap) and the Shepparton manufacturing facility to Selleys, a division of DuluxGroup (Australia) Pty Limited (Selleys) for a purchase price of $60 million.
The Pental Board believes this transaction represents significant value recognition for shareholders. The total sale price plus expected agreed and customary adjustments, the unwinding of the Duracell distributorship, debtors and creditors, represents approximately 118% of Pental’s current market capitalisation of $53.7 million.
Moving forward, Pental will transition into a dedicated eCommerce business underpinned by Hampers with Bite. The company remains optimistic about the growth opportunities that lie ahead and throughout FY23 the company implemented several strategic initiatives to ensure it continues to grow long-term shareholder value.
These initiatives have built the underlying infrastructure required to accelerate organic growth. The business will also implement a targeted acquisition growth strategy to complement its existing product offering and enter new markets.
“What we are announcing today creates a simplified and more focused business, while also realising value for shareholders,” said Pental Managing Director, Charlie McLeish.
“Selleys is a highly regarded business with significant capabilities within the Consumer Products space, including Household Cleaning. We believe that they are well equipped to continue to enhance the reputation of our products, including our flagship brand White King, as well as provide great opportunities for our employees.”
“Selleys is committed to retaining manufacturing in Shepparton, offering employment to all current employees and growing the Pental consumer products business over time.”
As a standalone eCommerce business, Pental will have a more targeted strategy and greater financial flexibility to invest in strategic growth initiatives, business acquisitions and technology development. It will also be a less complex business, which will enable a significant reduction in corporate overhead costs.”
We believe that the proposed transaction represents an opportunity for significant shareholder value relative to our market capitalisation. For many years our business has been underpinned by long-term supportive shareholders, and as such we are implementing a dividend reinvestment plan to ensure shareholders have the opportunity to re-invest as we embark on our next phase of growth.”