Pacific Brands inks deal with NZ bedding businesses
11 Dec '07
2 min read
Pacific Brands Limited announced that it has entered into a conditional agreement to sell its New Zealand Foams, Flooring and Bedding businesses to Vita New Zealand Limited (Vita).
Vita was formed in 1976 and employs more than 400 people across three factories. It has revenues in excess of NZD50million and markets a range of consumer and industrial foam and polyester based products.
In making the announcement today, Vita Deputy Chairperson Michael Sexton said, ”The acquisition of Pacific Brands' Foams, Flooring and Bedding businesses is very positive for the employees, customers and suppliers of both businesses. Pacific Brands have built vibrant and successful Foams, Flooring and Bedding enterprises in New Zealand that fit well with Vita's existing businesses and, once integrated, will drive substantial benefits.”
“Ongoing co-operation in research and product development between Vita and Pacific Brands' equivalent operations in Australia will allow both businesses to increase their competitiveness in their respective national markets.”
Commenting on the sale, Pacific Brands Chief Executive Officer Elect, Ms Sue Morphet said, “The relatively small size of the New Zealand market means that local manufacturers have to be highly efficient to remain competitive. Vita and Pacific Brands both recognise that neither business could on its own generate the volume needed to remain a viable and ongoing local manufacturing entity.
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