By Aimee Chanthadavong

Pacific Brands will be selling its Dunlop Foams and Sleepmaker businesses to Sleepyhead for approximately $55 million while also acquiring Sleepyhead’s Australian carpet business Wonderlay for an undisclosed amount.

According to Pacific Brands, the divestment is inline with its transformation program, which was announced last year.

“Dunlop Foams and Sleepmaker are not part of Pacific Brands' long-term strategic focus and the price and terms agreed are commercially attractive,” the company said in a statement.

All Dunlop Foams and Sleepmaker employees will transfer with the businesses to Sleepyhead.

Pacific Brands also noted the acquisition of Wonderlay will compliment its Dunlop Flooring business as Wonderlay has been sold by a network of distributors while Dunlop Floor operates through a direct sales model.

The transaction is expected to be completed during the next three months. The sale of the businesses to Sleepyhead and the acquisition of Wonderlay are subject to ACCC approval.

The sale of Dunlop Foams and Sleepmaker are expected to reduce Pacific Brands’ sales revenue and EBITA of approximately $160 million and $11 million respectively on a full year basis.