Findel has agreed to sell its catalogue retailer Kleeneze to Trillium Pond, a subsidiary of US group CVSL, in a deal valued at £3.6m.
The transaction is expected to be completed by the end of March, with the majority paid in cash and the remainder in CVSL shares.
Kleeneze, Findel’s smallest business, supplies a range of household, kitchenware and health and beauty products across the UK and Ireland.
The business reported a pre-tax loss of £400,000 in the half year to September 26, down from a profit of £600,000 in the previous year.
In a statement announced to the City, Findel said the sale of Kleeneze would “streamline the group and enable it to focus its resources on growing its core businesses”. It added that proceeds from the sale would be used to further reduce the group’s debt. Findel is also looking to offload its sportswear business Kitbag.
Findel chief executive Roger Siddle said: “CVSL represents a natural home for Kleeneze. We believe that this transaction is in the best interests of both Findel and Kleeneze, allowing Kleeneze to benefit from the extensive expertise and support of CVSL whilst allowing Findel to focus its resources on growing its core businesses.”
As part of the agreement, Express Gifts will continue to provide Kleeneze with distribution and other support services on an exclusive basis for a minimum period of 18 months.
CVSL is the owner of companies such as home decor brand The Longaberger Company, gourmet food firm Your Inspiration At Home and custom stationery company Paperly.