Godfreys buyback
The 99-year-old co-founder of vacuum cleaner business Godfreys Group has launched a bid to buy back the struggling business and take it private.
THE 99-year-old co-founder of vacuum cleaner business Godfreys Group has launched a bid to buy back the struggling business and take it private.
John Johnston, who first launched Godfreys in 1936 with Godfrey Cohen in Melbourne, has launched a 32¢-ashare bid to take the business off the ASX and set about rebuilding its failing fortunes.
Adelaide-based Mr Johnston is making the all-cash, offmarket bid through a familyowned company, Arcade Finance, which holds a 28 per cent stake in Godfreys.
Mr Johnston’s offer represents a 49 per cent premium for Godfreys shares and values the business at about $13 million.
Since listing in 2014 at $2.75, Godfreys has suffered falling sales, multiple changes of senior management and a sustained slide in share price to 21¢ yesterday – an all-time low.
In February the company plunged to a $59 million loss for the first half of 2017-18 after a further slump in sales.
CEO Jason Gowie has pledged to turn around the business’s ailing fortunes.
An Arcade spokesman said Mr Johnston had watched the decline of the business from a distance and felt the time was right to step in.