Woolworths Sells Dick Smith Electronics

Submitted by Share Trading on 28 September, 2012 - 07:46

Australian retail giant, Woolworths (ASX:WOW) has sold Dick Smith Electronic to Anchorage Capital Partners for $20 million.

  • In the ASX stockmarket announcement, Woolworths said that it had signed a share sale agreement for 100 percent of the Dick Smith Electronics subsidiary to Sydney based Anchorage Capital Partners.
  • Dick Smith electronics has 325 stores with 4,500 employees.
  • As part of the strategy to offload Dick Smith, Woolworths took a $420 million impairment charge on its financial books.
  • The private equity firm has appointed Nick Abboud as Chief Executive of Dick Smith, a former Myer executive.
  • Woolworths has also sold Woolworths Wholesale in India to Infiniti Retail for $35 million.
  • In 2011/2012 financial year, Dick Smith had a turnover of $1.4 billion.
  • Woolworths chief executive Grant O'Brien said, "We announced the company's strategic priorities in November 2011, which included a review of our portfolio of assets, particularly our participation in the consumer electronics category, with a view to maximising shareholder value. These businesses were a small part of Woolworths and this divestment will allow us to be fully-focused on the core parts of our business."