McPherson's is selling the remaining stake in its housewares joint venture so it can focus on its core health and beauty products, including Manicare.
The company announced the plan as it unveiled a solid rise in first half profit.
McPherson's sold 51 per cent of its housewares division, which included brands such as Wiltshire and Stanley Rogers, to German company Fackelmann back in November 2014.
It expects to use around $20 million in proceeds from the sale of its remaining stake to pay off its debt of $92.8 million, which will help strengthen its balance sheet.
The housewares division hurt the group's first half revenue, which fell 8.9 per cent to $168.4 million.
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The company managed to offset the decline with "price increases, operational initiatives and significant expense reductions" to raise its net profit 8.6 per cent to $10.1 million.
Managing director Paul Maguire said the weaker Australian dollar had caused a difficult trading environment but the company was recovering well.
He said the decision to sell off the housewares business was part of a broader strategy to increase the focus on health and beauty.
"Emphasis is being placed on growing (health and beauty) as they have substantial growth potential both here and overseas," Mr Maguire said.
The company's shares rose 16 cents, or 22.4 per cent, to 87.5 cents.
MCPHERSON'S SELLS OFF ITS HOUSEWARES DIVISION:
* Half year net profit of $10.1m, up 8.4 pct
* Revenue of $168.4m, down 8.8 pct
* Final dividend steady at six cents per share.
