Large Chunk Of Sunbeam Sold To Jarden Corporation

Herron said the move is a remedy for Sunbeam’s past poor
performance and that this situation has largely occurred because “…we have
been negatively affected by new product activity, especially by the introduction
of pod and capsule coffee machines which have experienced exceptional consumer support
due to the convenience they offer.”

Herron said “…ultimately the Sunbeam business is not
strategically well positioned as we do not enjoy economies of scale in an
industry that has internationalised over the last decade.

“We have known this for some time and the previous attempt
made to link Sunbeam with Breville was a potential solution to this problem,
but as you are aware we weren’t successful in pursuing that direction,” he
added.

Herron added that GUD Holdings will purchase 49 per cent of
Jarden’s Consumer Solutions Asian sales and marketing business, as part of the
overall deal. GUD Holdings is Sunbeam’s parent company and Jarden Corporation
is already the owner of the Sunbeam brand outside of Australia and New Zealand.

Herron said that the two problem businesses under the GUD
umbrella had been identified as Sunbeam and Dexion (a storage product company)
and that “both Sunbeam and Dexion reported lower financial returns in 2013-14
than in the prior year.”

However, Herron noted that both Sunbeam and Dexion had
turned the corner and with these proposed action, there should be “marked
improvement in the current year.”