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Hills and Woolies sign long-term deal

Dec 04, 2014
Hills boss Ted Pretty

Hills boss Ted Pretty

Woolworths has won the exclusive rights to distribute the famous Hills brand of clotheslines and garden products.

The retail giant has signed a 19-year deal with Hills, the maker of the famous Hills Hoist clothesline, to distribute its 240 products.

Woolworths plans to sell the products in its Masters and Home Timber hardware chains as well as its Big W stores.

Hills CEO Ted Pretty said the deal would strengthen the South Australian-based company by allowing it to focus on building its technology business.

“Woolworths is one of Australia’s pre-eminent retailers with national coverage and penetration across a range of retail channels,” he said in a statement.

“We have no doubt that Woolworths is the right partner to successfully distribute and market our products.

“This agreement will also allow Hills to focus on building our technology business, particularly our security and healthcare portfolio to achieve our stated growth ambitions. Additionally, we will enjoy greater certainty of earnings and a strengthening of our profit performance. There will be a positive impact on the balance sheet from the reduced requirement for working capital.

“This is an exciting step forward in our strategy to be Australia’s leading provider of technology solutions into government, enterprise, business and the home.”

Woolworths Home Improvement Managing Director, Matt Tyson said Hills was “Australia’s leading laundry, clotheslines and garden spray supplier, with the largest share of the $75 million clothesline category”.

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“They will be a strong partner and another example of Masters range expansion plan,” he said.

Shares in Hills were five cents higher at $1.24 at 1106 AEDT, while Woolworths gave up some early gains to fall four cents to $30.86.

– with AAP

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