By James Wells
UK: The sale of Alba’s domestic appliances division, which includes the Breville brand, to private equity company Rutland Partners for £51.5m, will not affect the business of the Australian subsidiary according to local management.
Alba has announced it will sell its leisure division – Pulse Home Products – which was established last year and includes small appliances brands sold in the UK including Breville, Bush and Hinari as well as licensed brands – Nicky Clarke, JCB and Dirt Devil.
Alba’s local subsidiary, Bush Australia, sells televisions and audio products under the Grundig brand as well as Ministry of Sound audio products, Bush appliances and Joh Bailey hair care products.
“It does not affect us at all,” Bush Australia managing director, Daniel Todd told Current.com.au.
“It is actually great news as the company is now cash rich and it will allow us to take a few more risks and look into some new product areas.
“Alba is trying to focus on the browngoods side and this is the reason why it was decided to separate the two companies. Pulse has always been known for appliances – it makes a lot of sense.
“We will have exactly the same infrastructure in our Hong Kong office and we will maintain links with the people at Pulse,” Todd said.
Analysts have reported that Alba sold the division for less than originally projected.
“I suppose you always want more, but it was a fair price for both parties," Alba chief executive, Daniel Harris told Reuters.
Harris said he will continue to focus on the consumer electronics business after the company conducted restructuring after several tough years of sales.
"Consumer electronics and domestic appliances used to be very similar," he said.
"But consumer electronics has become more a digital business and we thought it was better for the development of both businesses to be separate," Harris said.