07 Aug 2012 Sale of Pulse Home Products
Rutland Partners, the specialist turnaround and restructuring investor, announces that on 5 August 2012 it agreed and completed the sale of its entire interest in Pulse Home Products (“Pulse”) to Jarden Corporation. The terms of the transaction are not being disclosed but represent an attractive return to Rutland.
Pulse is a leading provider of branded goods to the UK home products market, primarily small domestic appliances under the Breville brand name. Other brands include Nicky Clarke hair care and Dirt Devil vacuum cleaners in the UK. The company innovates and designs the majority of its products at its headquarters near Manchester which are then manufactured by third party suppliers in the Far East.
Following Rutland’s acquisition in August 2007, Pulse’s logistical and administrative operations were separated from that of its former parent and the business was transitioned to an efficient stand-alone entity. The restructuring of operational disciplines, continued investment in brand stretch and innovation together with new channels to market have delivered market share gains and strong operational cash flow over Rutland’s period of ownership. The Breville brand, in particular, has shown great resilience during the challenging consumer market conditions of the last four years.
The sale of Pulse is the second disposal from Rutland Fund II (£320 million) following the €180 million sale earlier in 2012 of Attends Healthcare for a return of 3.3x its original equity investment. Other portfolio investments currently held by Rutland include CeDo (the leading European manufacturer of refuse sacks and food bags), Brandon Hire (the tool and equipment hire business with a national UK network), GEMS International (a world leading subsea technical analysis and surveying business) and Laidlaw Interiors Group (the UK market leader in the manufacture and distribution of doors and commercial interior systems).
Commenting on the deal, Mike Harris, Partner of Rutland said:
“The sale of Pulse Home Products represents a cash return of approximately 1.5x Rutland’s original £27 million investment and is a notable achievement for Rutland, particularly so in current market conditions. The terms of sale reflect the market leading qualities that have been developed in the business and the opportunities which underpin its long-term growth prospects. Finding a strategic buyer enabled us not only to complete an opportunistic transaction on a timely basis, but also to leave the business well positioned to benefit from the synergies of being part of a larger player in the market. We wish Jarden and the management team every success.”
Commenting on the deal, David Allen, Chief Executive of Pulse said:
“Rutland have been highly supportive in the development of Pulse over the last five years. Pulse is a well positioned business and we are all excited about the opportunities that the next chapter in our history will bring.”
The transaction was led on behalf of Rutland by Mike Harris and David Wardrop.