Dick Smith sold for $20 million
Retail giant Woolworths has announced it has sold electronic retail company Dick Smith to Australian private equity firm Anchorage Capital Partners for $20 million.
The announcement comes after Woolworth’s CEO, Grant O’Brien, announced the company’s intention to exit the Dick Smith business through a restructure and divestment process.
Under the agreement, Anchorage will purchase 100 per cent of the business, including 325 stores and 4,500 employees.
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 has announced it will now work closely with Anchorage to see a smooth transition to new ownership.
The sale is expected to finish late this year.