Looking to refocus ... Hills cheif Ted Pretty
Hills Holdings has completed the sale of one of the three businesses it has earmarked to hive off as part of its strategy to refocus.
The company announced it has sold its 48 per cent stake in pipe and galvanising business Korvest in a placement to institutional investors that raised $26 million in capital.
Hills, the brand behind the iconic Hills Hoist clothes line, will look to refocus and reinvest in its technology business under new CEO Ted Pretty.
Hills’s existing technology business – which includes communications, home security and surveillance systems – accounts for about a quarter of its $1.1 billion revenue.
Pretty says he is also in the process of finding buyers for roofing business Fielders and steel distributor and tube and pipe manufacturer Orrcon Steel
Hills has retained investment bank Lazard to complete the sale of the assets.
Hills stock rose about 4.5 per cent on the news on Tuesday.
“The market might have thought we were being indecisive on the asset sales, but this shows we are getting on with it and executing our strategy,” Pretty says.
He says he expects to reduce Hills’s revenue in an effort to increase margins. Including Korvest, the three assets earmarked for sale represent about half of the total revenue generated by Hills.