GUD Holdings has entered into an agreement to sell the Oates janitorial and household cleaning products and chemicals business to German-owned Freudenberg Household Products, for an enterprise value of $A80 million.
Freudenberg Household Products is known in Australia for its Vileda brand and is also the distributor of Ansell consumer gloves. Victorian-based Oates has around 100 employees across Australia and is headed by former Wesfarmers executive David Chin.
Internationally, the Freudenberg Group’s cleaning and laundry care brands include O-Cedar, Wettex, Gala, Marigold and SWASH, Gimi and Framar. In 2016 the Group employed more than 48,000 people in almost 60 countries and generated sales of €8.6 billion.
Freudenberg Group CEO, Dr. Mohsen Sohi, said the transaction will drive the growth strategy of Freudenberg`s household product business in one of its key countries.
“Following the acquisition of Gimi to strengthen our European market, and the acquisition of Playtex household gloves in the USA, we are now expanding our business in the Asia Pacific region.”
Denis Myhalchyshyn, managing director of Freudenberg Household Products Australia, said: “This new combination of strengths will focus on high quality standards, accelerate the drive for innovation and create greater value and superior solutions for our consumers and customers.”
The sale is expected to be completed in the first quarter of next year, subject to approval by the Australian Competition and Consumer Commission (ACCC).