WD-40 announces divestiture of UK homecare, cleaning businesses for $7.5M

WD-40 (WDFC) announced the sale of its homecare and cleaning product businesses in the United Kingdom, consisting of its 1001 and 1001 Carpet Fresh brands, to Supreme Imports, a Manchester-based consumer products developer, manufacturer, and distributor. The transaction was completed through a simultaneous sign-and-close process, with WD-40 providing certain transition services for up to three months. The all-cash transaction, including inventory consideration, is valued up to $7.5M, including inventory consideration. This transaction, which includes only the homecare and cleaning product businesses in the United Kingdom, consists of all associated trademarks, domains, certain intellectual property, finished and unfinished goods inventory, existing manufacturing contracts, and limited manufacturing equipment. No facilities or employees will transfer to the buyer through this divestiture. For the company’s fiscal year ended August 31, 2024, the businesses to be divested generated net sales of approximately $9M. Through the nine months ending May 31, the businesses to be divested generated net sales of approximately $6.5M. The company anticipates using most of the up-front net proceeds from the transaction to pay down short-term high-interest rate debt. Any remaining or future funds will be held on the company’s balance sheet and used for general corporate purposes.