Sharechat Logo

Woolworths sells Dick Smith chain to Anchorage Capital for A$20M

Thursday 27th September 2012

Text too small?

Australian supermarket operator Woolworths has sold its Dick Smith consumer electronics chain for A$20 million to private equity firm Anchorage Capital Partners.

The Sydney-based retailer expects to complete the deal this year and receive initial cash proceeds in the 2013 financial year with possible earn-outs from the future sale of the chain, the company said in a statement. Woolworths took a A$420 million restructuring provision to divest Dick Smith this year, and won't face any future downside, it said.

"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," chief executive Grant O'Brien said.

Sydney-based Anchorage targets established companies with strong brands and an enterprise value of between A$50 million and A$150 million, according to its website. Last year it sold the New Zealand Burger King franchise to US private equity firm Blackstone.

Dick Smith Electronics operates 325 stores on both sides of the Tasman, with some 4,500 staff. The New Zealand unit posted a 5.6 percent fall in annual sales to $321.8 million with profit almost halving to $3.6 million in the 12 months ended June 30, 2011.

Separately, Woolworths said it has agreed to sell its interest in Woolworths Wholesale in India for A$35 million.

The supermarket chain's shares rose 1.1 percent to A$29.28 yesterday, and have gained 15 percent this year.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Devon Funds Morning Note - 1 September 2025
September 1st Morning Report
POT Financial Results for the year to 30 June 2025
MOVE FY25 Results for the year ended 30 June 2025
BPG - Completion of Retail Offer
Comvita releases results for the year ended 30 June 2025
August 29th Morning Report
Air New Zealand announces 2025 financial result
August 28th Morning Report
VSL - 2025 date of Annual Meeting of shareholders