Business
WD-40 Company Announces Divestiture of U.K. Homecare and Cleaning Businesses
~ Enables Increased Focus on Growth Strategy for Maintenance Products ~ SAN DIEGO--(BUSINESS WIRE)-- WD-40 Company (NASDAQ:WDFC) announced today the sale of
About this update from Wd-40 Company
[{"type":"text","content":"\n~ Enables Increased Focus on Growth Strategy for Maintenance Products ~\n\n\n SAN DIEGO--(BUSINESS WIRE)--\nWD-40 Company (NASDAQ:WDFC) announced today 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.\n\n\nThe 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 ($7.5 million), including inventory consideration.\n\n\n“This strategic action demonstrates our ongoing commitment to optimizing our portfolio and resources to prioritize the Company's higher growth, higher gross margin opportunities in maintenance products,” said Steve Brass, WD-40 Company's president and chief executive officer. “Our mantra, 'few things, many places, bigger impact,' is rooted in our long-standing strength: focus. We want every employee to wake up each day thinking about how to grow the blue and yellow brand with the little red top. This level of focus is rare, incredibly valuable, and was the key driver behind our decision to divest these non-core brands.”\n\n\nThis 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.\n\n\nFor the Company's fiscal year ended August 31, 2024, the businesses to be divested generated net sales of approximately $9.0 million. Through the nine months ending May 31, 2025, the businesses to be divested generated net sales of approximately $6.5 million.\n\n\nThe 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.\n\n\nD.A. Davidson served as the Company's financial advisor, and Cooley LLP served as the Company's legal advisor in connection with the trans...