GUNNS Limited has announced that it has entered into an agreement to sell its hardware retail business to Blue Mountains Hardware for $40 million, subject to completion adjustments.
The transaction involves the sale of the entire Gunns Hardware Retail Business in the state and the transfer of all its employees.
WHAT GUNNS SOLD ...- George Town, Port Sorell, Ulverstone, Devonport, Launceston hardware stores
- Burnie timber and trade centre at Wivenhoe
- Hobart Mitre 10 store and Ezy Furniture business
- Truss manufacturing plant, Gleadow Street, Launceston
- Gunns Mitre 10 head office, Cimitiere Street, Launceston
Gunns CEO Greg L'Estrange said: "significant interest was received during the sale process".
Mr L'Estrange said that the transaction also involved the retention of all employees at the retail sites.
Blue Mountains Hardware is a wholly owned subsidiary of John Danks & Son, which is a joint venture between Woolworths Limited and Lowe's Companies Inc.
The sale includes five hardware stores in Tasmania, one timber joinery centre, one truss manufacturing plant and a support office.
The sale is expected to be completed by May 31.
In a separate arrangement, Danks has agreed to acquire the Becks Timber & Hardware business. All Becks employees will receive offers of employment.
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