(RTTNews) – WD-40 Co. (WDFC) announced Tuesday the sale of its homecare and cleaning product businesses in the United Kingdom, consisting of its 1001 and 1001 Carpet Fresh brands, to Supreme Imports Ltd, a Manchester-based consumer products developer, manufacturer, and distributor.
The transaction was completed through a simultaneous sign-and-close process, with WD-40 Company providing certain transition services for up to three months.
The all-cash transaction, including inventory consideration, is valued up to 5.6 million UK pounds or $7.5 million.
This strategic action is part of WD-40’s ongoing commitment to optimize its portfolio and resources to prioritize the Company’s higher growth, higher gross margin opportunities in maintenance products.
This transaction, which includes only the homecare and cleaning product businesses in the United Kingdom, consists of all associated trademarks, domains, certain intellectual property, finished and unfinished goods inventory, existing manufacturing contracts, and limited manufacturing equipment. No facilities or employees will transfer to the buyer through this divestiture.
The businesses to be divested generated net sales of approximately $9.0 million last year.
The Company anticipates using most of the up-front net proceeds from the transaction to pay down short-term high-interest rate debt. Any remaining or future funds will be held on the Company’s balance sheet and used for general corporate purposes.
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