Sunbeam parent company GUD Holdingsbuys almost 20 per cent of Breville

Sunbeam’s parent company, GUD Holdings, has this morning announced the acquisition of almost 20 per cent of its biggest rival in the small appliance category, Breville.

In a brief notice to the Australian Securities Exchange (ASX), GUD managing director Ian Campbell advised the market that his group had secured a 19.4 per cent share of Breville Group Limited for just over $18 million.

“As the owner of Sunbeam, the acquisition of 19.4 per cent of Breville is an attractive investment opportunity for GUD, satisfying the company’s strategic and financial objectives,” said Campbell.

“GUD was approached to buy the shares and has no current intention to acquire further shares in Breville.”

Campbell further told the ASX that this acquisition is to be funded from GUD’s cash reserves, and that Breville dividends, at current levels, should prove self-funding.