Ann: Sale of Hills Holdings Healthcare Equipment , page-2

re: Ann: Sale of Hills Holdings Healthcare Eq... Yep, why not offload your only growth platform. They made the biggest song and dance about this business when they bought it in 2006, to now offload it is a disgrace.

Just read some of these lines carefully.

The sale, for an undisclosed amount, is not material to the sales and earnings of the Hills Holdings Group.

Don't believe that, but also this business could have been anything, especially with an aging population. Also, they clearly state within their reports that this business continues to perform and make money, so why offload it and obviously for not much.

"Hills will continue to explore opportunities in the healthcare industry but with an emphasis on offering products and services from within the Group’s leading Electronics & Communications division rather than being a producer and distributor of assisted care equipment,”

How? Sell an aged care facility an aerial or maybe an intercom? I can buy them at Dick Smiths. I'd rather have sold them beds, wheelchairs and dunny pans.

“This divestment, which is expected to complete by the end of January, is in line with the restructuring initiatives and strategic settings outlined in November at our 2012 Annual General Meeting and is currently being implemented to better position the Group for the future.

Restructing? into what? What plan do they have? Buy another Orcon or Fielders, maybe bring back the manufacturing of the Hill Clothes line!!!!

K Care Pty Limited’s new Managing Director, Mr Alan Lipman, said: “We are delighted to acquire this iconic business within the healthcare equipment sector.”

A private equity firm bought this business, this should tell people that.
A. Private equity think it's a bargain.
B. They could run it better.
C. Hills ran it poorly.
D. Put some time and effort it and it could multiply your money many times over.

And how about Hills not telling shareholders what they got for their Healthcare divison!!!

Hills had their chance to transform and move into the mining services game in 2004, just like Campbell Brothers did. They moved from being a soap and detergent manufacturer, worth $100m, into a laboratory testing company now worth $4b (Hills were worth $500m at the time).

But hey, there is a positive, Jenny Hill-Ling still gets to run the family business.