Sunbeam’s parent company GUD Holdings has announced that it will sell 49 per cent of the appliance brand to US-based Jarden Corporation, which is the owner of the Sunbeam brand outside of Australia and New Zealand.
As part of the deal GUD Holdings will purchase 49 per cent of Jarden’s Consumer Solutions Asian Sales and marketing business.
The sale is an attempt to fix key problems facing Sunbeam that have caused weaker financial results over recent years.
Speaking today at GUD Holdings’ annual general meeting chairman Ross Herron said that at last year’s general meeting “two problem businesses” were idenifitied – Sunbeam and Dexion.
“Our priotrity was in stabilising these and returning them to profit growth,” he said.
“It is pleasing to report that both businesses have turned a corner and, as a result of actions taken, are reporting growth in financial performance that should translate to a marked improvement in the current year.”
He said that Sunbeam’s declining financial performance over recent years was due to competitive pressures in the local market, including from capsule coffee machines, and a lack of innovative new products.
“I think it is also true that our innovation output has stalled and Sunbeam, it has slipped in relation to its previous record of being a leader in truly innovative new product introductions.
“Sunbeam is not strategically well positioned as we do not enjoy economies of scale in an industry that has internationalised over the last decade,” he said.
The arrangement with Jarden will resolve Sunbeam’s strategic scale problem, Herron said, and Sunbeam will be able to access Jarden’s extensive product and brand portfolio and product development activities.