GUD Holdings is exiting the small appliances business, selling its remaining 51 per cent stake in the iconic Sunbeam brand to its US-based joint venture partner.
GUD will sell its Sunbeam stake to Sunbeam Products Inc, which trades as Jarden Consumer Solutions and owns a portfolio of appliance brands with $US2 billion a year in global sales.
JCS already owns the Sunbeam brand globally except for the Australian and New Zealand markets, which until now have been owned by GUD.
GUD sold the other 49 per cent of Sunbeam to JCS in November 2014 under a joint venture agreement.
Sunbeam products were not manufactured in Australia.
GUD also said on Thursday that it is selling its 49 per cent share of Jarden Consumer Solutions (Asia) Ltd to its joint-venture partner.
GUD expects to get about $35 million from both transactions, which are expected to completed in July 2016.
The sale of the joint-venture interests mark GUD's withdrawal from the small appliance industry.
GUD has been a supplier of small appliances for 20 years since it acquired Sunbeam Victa Corporation in 1996.
"The sale of our remaining interest in Sunbeam to JCS is a result of the continuing strategic review of GUD's portfolio against the criteria of long-term growth and profitability," GUD managing director Jonathan Ling said in a statement.
Mr Ling said GUD's Sunbeam business had benefited from the connection with JCS, including JCS's product-sourcing capabilities.
But since the start of the joint venture, the pace of globalisation in the small appliance industry had led GUD to conclude that shareholders' best interests were served by an exit from the joint ventures.
Mr Ling said JCS could provide Sunbeam with the global scale that it currently lacks.
The exit from small appliances would also allow GUD to focus on its other businesses, which include cleaning products, warehouse racking and industrial and office storage.
GUD suffered a 90 per cent drop in its first-half profit to $1.7 million, following $18.5 million in impairments related mainly to its Dexion storage and shelving business.
The Sunbeam business generated an earnings loss as currency movements forced up product costs and price increases were deferred.
Shares in GUD were 65 cents, or nine per cent, higher at $7.87 at 1135 AEST.