August 10, 2007

Alba sells off leisure arm for £52 million

The electronic products distributor Alba who have been struggling for some time, have decided to sell off the leisure arm which distributes electronic goods, to Rutland Partners for £51.5 million.

The leisure division that was only established last year distributes electronic products like microwaves and vacuum cleaners, these are more commonly recognised under the well known household brands of Breville, Bush Domestic Appliances and Hinari and licensed brands including Nicky Clarke, JCB and Dirt Devil.

Alba wishes to concentrate on the home TV market such as wide screen and HD, which they sell under the grundig brand. Consumer electronics is a growth market provided that the company has the right products, which are begin offered for sale at the right prices. Get either one or both wrong and the company will be in serious trouble.

The company who lost £44 million before tax last year, have seen their share price drop slightly on the day too, so even with the sale of the leisure division for nearly £52 million couldn’t please everyone.

Source [Times Online]

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