By Keri Algar
SYDNEY, NSW: Almost a year after Breville’s takeover rejection, GUD Holdings Ltd, the parent company of Sunbeam, is a significant step closer to acquiring racking and storage business Dexion, after increasing its stake to 60.3 per cent.
GUD’s attempts to buy Breville Group Ltd last year were wracked with difficulties, starting with Breville’s rejection of the buyout in November 2009. Breville’s board said GUD could pay “significantly more”, according to a report on Current.com.au.
Then in December 2009, the ACCC announced that it would oppose GUD’s offer for Breville, due to the fact that it would lead to a reduction of competition in the small appliance industry.
GUD officially withdrew its offer in January this year, declaring disappointment with the ACCC’s decision.
The consumer and industrial product company posted record full-year profits in July 2010, reporting a net profit of $46.4 million for the financial year, up 33 per cent on last year.
GUD operates in four business segments including consumer products, automotive products, water pump products, and security products.
The Dexion takeover would diversify GUD’s portfolio to include industrial and commercial storage solutions.