Woolworths Limited has sold its Dick Smith Electronics business to private equity firm Anchorage Capital Partners. Anchorage will now take over the 325 bricks and mortar stores. Woolworths now has no dedicated consumers electronics business, though it will continue to sell consumer electronics through its Big W, Woolworths and Masters stores.
According to the Woolworths Limited release:
The sale of Dick Smith follows a detailed strategic review and restructure of the business, which determined that the business was non-core in the size and context of the broader Woolworths retail platform and focus on maximising shareholder value.
Under the sale agreement, Anchorage will purchase 100 per cent of the business including 325 stores employing more than 4,500 poeple.
Initial cash proceeds will be $20 million to be received in FY13 with Woolworths potentially benefiting from any upside resulting from a future sale of Dick Smith by Anchorage.
Woolworths will now work closely with Anchorage and the Dick Smith team to commence a smooth transition to new ownership and separation from Woolworths.
The release from Woolworths concludes by saying that Dick Smith “will continue to trade as one of Australia’s most iconic specialty consumer brands”.