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Unit of MTD Products Buys Rover Mowers
(Feb. 15, 2010) — Building fixture and household fittings supplier GWA International Ltd. has sold its mowing business, Rover, to the Australian arm of a U.S. lawn and garden power equipment group.
GWA said the final proceeds from the sale are dependent on Rover's working capital levels at completion, but are expected to be in the range of $10 million to $12 million.
"The lawn mower industry has changed substantially in recent years and Rover does not have the scale to be competitive in its own right," GWA managing director Peter Crowley said on Monday in a statement.
The sale to MTD Australia, part of U.S.-based MTD Products Inc, will be completed on April 1.
"MTD is a major global business, and being a specialist in this sector, will provide a strong base for Rover to trade successfully in the future," Mr Crowley said.
GWA will book a net loss of $3.4 million in its first half accounts to reflect trading results and asset write-downs as a consequence of the Rover sale.
This won't impact in dividend payments, GWA said.
"Overall this is a good result for Rover, which now has a new owner focussed on the lawn care market," Mr Crowley said.
"GWA shareholders will also benefit with the additional funds being available to focus on our core building fixtures and fittings businesses."
Source: theage.com.au
