Steinhoff International Holdings N.V. : Greenlit Brands divests general merchandise division
Steinhoff announces that Greenlit Brands Pty Ltd, its wholly-owned Australasian subsidiary, has updated stakeholders on the disposal of its general merchandise division. Louis du Preez, Steinhoff Group CEO said "The sale of Greenlit Brands General Merchandise division is a further step in Steinhoff's programme of planned divestments, as we continue with our announced strategy of simplifying the Group's portfolio and deleveraging our balance sheet. We wish Allegro and the General Merchandise management team every success with their future plans."
The full text of the Greenlit Brands announcement follows below.
Greenlit Brands divests general merchandise division to Allegro
Greenlit Brands Pty Limited (Greenlit Brands), an integrated retailer and manufacturer of furniture and household goods and one of Australia's leading retail groups, today announced that it has reached agreement to divest its General Merchandise (GM) division to Allegro Funds.
The GM brands included in this transaction are Best & Less, Harris Scarfe, Postie (NZ) and Debenhams Australia, which include 322 stores and over 6,100 employees. The terms of the transaction will remain commercial in confidence.
Divestment of the GM division is in line with Greenlit Brands' strategy of refocusing on its core Household Goods division which includes leading furniture retail, logistics and manufacturing brands in Australia and New Zealand, including Fantastic Furniture, Freedom, Snooze, Plush, OMF, Unitrans and FutureSleep. Following the transaction, Greenlit Brands will comprise a total of 319 retail stores with more than 3,800 employees across Australia and New Zealand.
Greenlit Brands' Executive Chair and Group CEO, Michael Ford, said: "Disposal of the General Merchandise business is a significant strategic initiative which will allow Greenlit Brands to concentrate on its core household goods brands and optimise their already-strong position in the Australian and New Zealand markets."
"At the same time, the General Merchandise businesses will now join a group with a very strong track-record in building and enhancing businesses with a single-sector focus. We believe this will unlock new opportunities for all the people working within these brands. Our gratitude and best wishes go to everyone who has helped build the businesses to where they are today."
"In a sense, this transaction sees us return to our roots as a focussed household goods group with a ladder of brands with demonstrable integration and as always, striving for our ambition to achieve remarkable retail."
Allegro Funds' Managing Director, Fay Bou, said: "The General Merchandise business includes some iconic retail brands that have long-standing loyal customers and passionate staff that have supported the business serving generations of Australians and New Zealanders. We look forward to supporting a highly experienced management team to transform each of the brands."
It is anticipated that completion of the transaction will occur at the beginning of December. Greenlit Brands will remain a wholly-owned subsidiary of Steinhoff International Holdings N.V..
Greenlit Brands was advised by Monash Private Capital. Allegro was advised by Evans Dixon.
Media contact for Greenlit Brands:
+61 411 251 324
Media contact for Allegro:
+61 415 900 891
About Greenlit Brands
Greenlit Brands comprises a portfolio of well-known and trusted brands including Fantastic Furniture,
Freedom, Snooze, Plush, OMF, Unitrans and FutureSleep, offering its customers a broad range of furniture and household goods. Greenlit Brands employs more than 3000 people with 319 stores across Australia and New Zealand.
About Allegro Funds
Allegro is an independently owned Australian fund manager with over A$1 billion FUM and is currently investing from Allegro Fund III which has committed capital from local and international blue chip investors. Allegro specialises in transformational capital, applying capital, expertise and a distinctly hands-on approach to investing in businesses requiring transformation. Allegro is the most recognised and awarded turnaround team in Australia being awarded Australasian Turnaround of the Year Awards in 2008, 2010, 2011, 2012, 2016 and 2017.
18 November 2019
18.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Steinhoff International Holdings N.V. cnr Adam Tas and Devon Valley Road 7600 Stellenbosch
South Africa Phone: +27218080700 Fax: +27218080800 E-mail: email@example.com Internet: www.steinhoffinternational.com ISIN: NL0011375019 WKN: A14XB9 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 914875 End of News DGAP News Service