Australian vacuum cleaner retailer Godfreys has announced it will spend $2.7 million on buying The Service Company, a New Zealand business that supplies environmentally-friendly cleaning products to businesses and government.

“There is a growing trend towards environmentally friendly products and this will be a significant enhancement to our offering,”chairman Rod Walker said.

“We look forward to developing this side of our business further and to capitalising on the growth in this market with an innovative product range.”

The acquisition news come as Godfreys announced a push into the growing eco-friendly cleaning market as it confirmed a downturn in half year profit.

Net profit for the six months to December 30 fell 15 per cent to $3.6 million, in line with its profit warning in January.

Comparable store sales fell 5.2 per cent, with the company acknowledging it had failed to capitalise on the demand for stick vacuum cleaners.

The retailer also confirmed it’s still expecting a sharp decline in full year underlying net profit tax to between $8.5 million and $9.2 million.

While Godfreys paid the price for not capitalising on the stickvac trend, chairman Rod Walker has announced plans to push into the eco-cleaning market.

The company will spend $2.7 million on buying The Service Company, which is based in New Zealand and supplies environmentally-friendly cleaning products to businesses and government.

Shares in Godfreys were up five cents, or 4.6 per cent, at $1.15 at 1206 AEDT.