Dick Smith Holdings Limited

Website: www.dicksmith.com.au

Investment date: November 2012
Exit date: Partial exit December 2013, retaining 20% which was subsequently sold down in September 2014
Case Study

Company Description

Dick Smith is the largest consumer electronics chain in Australia and New Zealand by number of stores, with approximately 369 stores in December 2013.  Dick Smith sells a wide range of consumer electronics products, including computers, printers, tablets, mobile phone handsets and connection plans, televisions, DVD players, audio products, and numerous related accessories and services.  The business sells primarily through its physical store network, and also operates an award-winning website providing the full range of Dick Smith products and services.  Forecast revenues for the year ending 30 June 2014 were approximately $1.2B. 

Investment Overview

Dick Smith had been owned by Woolworths since the early 1980’s, until early in 2012 when Woolworths announced the business was non-core and commenced a sale process.  Recognising a turnaround opportunity given Dick Smith’s orphan status with Woolworths, after a period of exclusivity Anchorage acquired the business for $20 million in November 2012 . 

Following the completion of the turnaround program and the transition to a growth agenda, Anchorage began to explore exit options.  The IPO was successfully completed in December 2013.