Distributor Hills Limited has reached an agreement to sell its underperforming antenna business.
The distie foreshadowed divesting its antenna business in August 2019, when it said it had an offer for the business. We can now say with some certainty that offer came from Bitek, a manufacturer and distributor of antennae, home AV equipment and other products.
Hills’ ASX announcement (pdf) revealing the deal doesn’t detail its value, but says it was made in line with the company’s strategic review and decision to focus on returning its distribution business to profit.
Hills managing director and CEO David Lenz said the deal will create “a much more streamlined and simplified distribution business.”
“With more than two decades of local industry experience, Bitek is the perfect fit for our Antenna business,” Lenz said. “We’re delighted the Hills name and its much-loved products will live on in the antenna industry, along with Hills’ commitment to providing the best support and services for our customers.”
Bitek managing director’s statement on the sale said the joined entities’ “combined sales and support team of 55 across Australian and New Zealand” will deliver “a larger range of products – both Australian-made and the best from around the world –and even stronger sales and customer support.”
Hill’s “Black Arrow” antenna will continue to be made in Australia, but Bitek performs other manufacturing offshore.
Hills distributes vendors including Dell, Ruckus Wireless, SonicWall and D-Link.
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